Gold and silver prices weakened amid a surge in oil prices and the US\ndollar.<\/p>\n
Investors were also focused on the dollar\u2019s strength and rising oil\nprices, while awaiting US inflation data for clues about the Federal\nReserve\u2019s interest-rate policy.<\/p>\n
According to Refinitiv, gold closed at US$4,171.09 per troy ounce on\nMonday (12 October 2026), down 0.54%. The decline ended a two-day\nrally.<\/p>\n
Gold began to recover on Tuesday (13 October 2026), rising 0.03% to\nUS$4,172.27 per troy ounce at 6.23 am Western Indonesia Time.<\/p>\n
One factor behind gold\u2019s decline was the sharp rise in the US dollar.\nThe dollar index climbed to 102.589, its highest level since April 2025,\nwhen the world was shaken by a trade war.<\/p>\n
Gold purchases are priced in US dollars, so a stronger dollar tends\nto reduce demand.<\/p>\n
\u201cWe are seeing selling pressure on gold as the dollar is near a\none-and-a-half-year high,\u201d said Jim Wyckoff, a market analyst at\nAmerican Gold Exchange, as quoted by Refinitiv.<\/p>\n
Escalating conflict in the Middle East has also kept investors\ncautious.<\/p>\n
Investors will be watching remarks by Federal Reserve Chair Kevin\nWarsh, as well as several key inflation figures due this week, to assess\nthe future direction of US monetary policy.<\/p>\n
The US Consumer Price Index (CPI) is scheduled for release on\nWednesday, followed by the Producer Price Index (PPI) and retail sales\ndata on Thursday.<\/p>\n
\u201cI don\u2019t think those reports will show signs of inflation easing. The\ndata are likely to be a negative sentiment for the metals market,\u201d\nWyckoff added.<\/p>\n
The market broadly expects the Fed to hold interest rates at its\nmeeting later this month. However, CME\u2019s FedWatch tool puts the\nprobability of a rate increase in December at 87.7%.<\/p>\n
In a high-interest-rate environment, investors tend to favour assets\nthat generate returns over gold, which pays no interest.<\/p>\n
Meanwhile, oil prices rose on Monday to near their highest level in\nalmost two weeks. Attacks on Saudi Arabia outweighed the prospect of\nadditional supplies entering the market after US President Donald Trump\nwelcomed new Russian diesel exports and a Russia-Ukraine ceasefire\nagreement covering energy infrastructure.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/gold-and-silver-take-a-beating-as-tough-tests-loom-1791852633", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }