Analyst Reveals Cause of Global Gold Price Plunge
Director of PT Traze Andalan Futures, Ibrahim Assuaibi, has revealed the reasons behind the plunge in global gold prices amid the US-Israel war with Iran. According to Trading Economics data, the global gold price fell to US$4,361 on Tuesday, 24 March 2026. The commodity weakened by 15.59 per cent on a monthly basis.
Ibrahim stated that the drop in gold prices is due to the rise in Brent crude oil prices resulting from the conflict in the Middle East. He explained that the increase in Brent crude prices will affect aviation transport, thereby impacting inflation.
“Iran is one of the Brent crude oil producing countries for aviation fuel, which is causing gold to slip and investors to shift to the US dollar as a safe haven,” said Ibrahim in his statement, quoted on Tuesday, 24 March 2026.
Although gold prices have corrected, Ibrahim said the commodity will remain a hedging asset or safe haven. He mentioned that gold price corrections will continue as long as the war in Iran persists. In addition, the surge in commodity prices has led several central banks to maintain high interest rates. There are even concerns that global central banks will raise interest rates. If this happens, the dollar index will strengthen again, and global gold prices will experience further corrections.
According to Ibrahim, investors are currently awaiting the potential outbreak of a ground war in Iran. Because if Iran wins, gold prices will soar again. However, if Iran loses, gold prices will continue to weaken.
On the other hand, Ibrahim believes the rupiah will cushion the weakening of precious metals domestically. “Due to the ongoing weakening of the rupiah, there is a tendency for precious metal prices to stabilise again and return to the Rp 3 million level,” said Ibrahim.
As of Tuesday, 24 March 2026, the price of Antam gold bars was recorded at Rp 2,843,000 per gram. This price was stable compared to the previous day. Meanwhile, on Monday, 23 March 2026, Antam gold prices plunged by Rp 50,000.