Jakarta \u2014 Gold and silver prices have finally recovered after a\nrecent downturn. Prices improved after crude oil and the US dollar\nweakened.<\/p>\n
According to Refinitiv data, gold closed at US$5,193.93 per troy\nounce, surging 1.06% during Tuesday (10 March 2026) trading. This\nincrease came as welcome news following a 0.64% decline on Monday.<\/p>\n
Gold prices continued rising today. On Wednesday (11 March 2026) at\n06:18 Western Indonesian Time, gold strengthened by 0.05% to US$5,193.93\nper troy ounce.<\/p>\n
Gold prices improved after crude oil weakened on Tuesday. The decline\nin oil prices also put downward pressure on the US dollar. The dollar\nindex closed at 98.89 on Tuesday, down from its previous level of\n99.18.<\/p>\n
Gold is currently \u201cin battle\u201d between two competing market forces:\ngeopolitical tensions pushing prices higher versus dollar strength\nconstraining gains. Gold typically rises during geopolitical crises as\ninvestors seek it as a safe-haven asset. However, a strong US dollar can\nsuppress gold prices, as it makes gold more expensive for buyers using\nother currencies.<\/p>\n
The dollar index climbed to the 99 level on Monday, causing gold\nprices to collapse.<\/p>\n
Gold began recovering following US President Donald Trump\u2019s speech on\nTuesday, which suggested the conflict would soon end. The speech\nimmediately pressured oil prices. With oil prices weakening, US\ninflation is expected to ease, which could lead to potential interest\nrate cuts by the Federal Reserve. With greater probability of cuts,\ninvestors have sold the dollar, causing the index to weaken. Gold has\ntherefore been able to rise again.<\/p>\n
Interest rate cuts typically support assets such as gold, which\ngenerate no yield.<\/p>\n
Before Trump\u2019s speech, market participants believed the Federal\nReserve might maintain or even raise interest rates to contain\ninflationary pressures from rising energy costs.<\/p>\n
Analysts note that although oil prices have fallen, levels remain\nrelatively high. This suggests inflation will likely persist at elevated\nlevels, but not high enough to prevent the central bank from cutting\nrates this year. These conditions have provided some relief to investors\nregarding monetary policy direction.<\/p>\n
Nevertheless, analysts emphasise that major shipping routes remain\ndisrupted and energy prices remain far higher than before the conflict\nbegan, indicating risks continue to exist.<\/p>\n
Despite volatile trading and slowing momentum gains since the decline\nfrom a record high in late January, gold prices have still recorded\nsignificant gains throughout the year.<\/p>\n
\u201cFor gold traders, falling but still-elevated oil prices mean\ninflation will rise, but not high enough to prevent the US central bank\nfrom cutting interest rates this year,\u201d said Bart Melek, head of global\ncommodity strategy at TD Securities, to Reuters.<\/p>\n
\u201cInvestors are starting to feel more comfortable that the currency\ndebasement trade could strengthen again over time,\u201d he added.<\/p>\n
Today, gold investors await US inflation data. If inflation rises,\nthe likelihood of rate cuts recedes, potentially causing gold to fall\nagain.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/gold-price-in-battle-between-two-major-forces-everyone-beware-1773190578", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }