Awaiting a "Deadly" Week, Gold and Silver Prices Immediately Take a Beating

Awaiting a “Deadly” Week, Gold and Silver Prices Immediately Take a Beating

Jakarta, CNBC Indonesia - Gold and silver prices are expected to continue moving under pressure this week. Several major sentiments, from the US Federal Reserve (The Fed) central bank meeting, the strengthening of the US dollar, the surge in oil prices, to Iran geopolitical tensions, are anticipated to determine the direction of precious metals.

According to Refinitiv, gold prices in the last trading session of last week, Friday (24/4/2026), rose slightly by 0.34%. However, on a weekly basis, gold still corrected by around 2.5%, indicating that selling pressure has not fully subsided.

Entering the beginning of this week, gold prices immediately plummeted. On Monday (27/4/2026) at 06.27 WIB, gold prices stood at US$4,679.32 per troy ounce, or down 0.62%.

Gold’s movement became volatile again after previously failing to break through the psychological level of US$5,000 per troy ounce. In recent weeks, gold prices have been recorded moving in the high range of US$4,800s to the low US$4,700s.

Saxo Bank analysts assess that gold prices are still trapped in a tug-of-war between safe-haven asset demand, the strength of the US dollar, and geopolitical developments related to Iran.

Although investors are still utilising the price weakness for accumulation, there has not yet been a large-scale buying flow as during the previous rally. This makes the market more sensitive and unpredictable.

A cautious outlook also comes from Morgan Stanley. The investment bank has cut its gold price target for the second half of 2026 to US$5,200 per troy ounce from the previous US$5,700.

Morgan Stanley states that the revision is triggered by weakening demand from official institutions, ongoing outflows from Exchange Traded Funds (ETFs), and reduced expectations for interest rate cuts.

Sentiment Storm Hinders Gold This Week

Saxo Bank analysts also warn that until there is real progress towards peace in the Middle East, gold and silver are likely to remain moving within a limited range.

“Next week’s focus will remain on developments in peace talks between the United States and Iran, as well as the potential impact on oil, gold, and global financial markets,” said Pranav Mer, Vice President of Commodity & Currency Research at JM Financial Services Ltd, to PTI.

Investors will also await monetary policy decisions from several major central banks, including The Fed, the Bank of Japan (BOJ), the Bank of England (BOE), and the European Central Bank (ECB).

In particular, the Federal Open Market Committee (FOMC) meeting on 29 April will be a major market focus as it is seen as the last important meeting under Jerome Powell’s leadership. Market participants will seek clues on the direction of future interest rate policy.

In addition, the market is awaiting a series of US economic data such as the housing sector, Personal Consumption Expenditures (PCE) inflation, consumer confidence, and manufacturing activity. This data has the potential to influence expectations for interest rate cuts and the direction of the US dollar.

“Gold prices cut some of last week’s gains after failing to break US$5,000 per ounce, and were weighed down by profit-taking actions following a 10%-12% rally in the previous four weeks,” said Mer.

He added that a strong US dollar and rising Treasury yields continue to pressure precious metals, supported by US economic data that is stronger than expected.

According to him, diverse global central bank activities and uncertainty over the timing of interest rate cuts amid commodity-based inflation could keep gold prices volatile.

Going forward, gold is expected to still receive support in the lower area, but is vulnerable to corrections if the US dollar remains strong and geopolitical tensions ease.

Meanwhile, silver (XAG) is also expected to remain volatile. The silver market is digesting The Fed’s hawkish stance, high oil prices, and improving market liquidity.

In the short term, high inflation could delay interest rate cuts and support the US dollar, thus becoming a pressure for silver. However, in the long term, silver’s prospects are assessed as still positive, especially if the support area around US$50-US$60 holds.