Back from the Dead: Gold Price Surges 3% in a Day, Returns to US$4,200

Jakarta, CNBC Indonesia - Spot gold prices soared after a brutal sell-off, surging following US President Donald Trump’s announcement of a postponed attack. According to Refinitiv, gold closed at US$4,213.84 per troy ounce, a leap of 3.5%. The rise was welcome news after the price had fallen 8.9% over the previous four days. The 3.4% daily gain was also the largest since 31 March 2026, when it rose 3.53%. Gold continued to strengthen on Friday (12/6/2026), climbing 0.5% to US$4,216 per troy ounce as of 06:28 Western Indonesia Time. The surge in gold was supported by a weakening in US government bond yields and the US dollar, bolstering the non-yielding metal which is traded in the greenback. The dollar index weakened to 99.8, its lowest in six days. The dollar fell after President Trump cancelled a planned strike on Iran and stated that the US would soon sign an agreement with the country. Trump told reporters in the Oval Office that he had a deal ensuring Iran would never possess nuclear weapons. He added that the US would soon sign the agreement, with documents nearly finalised, and that it should be completed very quickly. In recent weeks, gold had lost momentum as the Iran conflict, now in its fourth month, disrupted energy flows through the Strait of Hormuz. This drove up oil prices and increased the likelihood of central bank interest rate hikes to control inflation. Higher interest rates typically have a negative impact on gold. The precious metal had fallen around 21% since the Middle East conflict began in late February. On Thursday, US economic data showed producer prices rose in May at the fastest pace in more than three years, reflecting the inflationary pressures caused by the war. The data highlighted the heavy burden of energy price shocks from the Strait of Hormuz closure on the US economy. Although gold is often seen as an inflation hedge, rising interest rates usually pressure the metal because it offers no yield.