Bad News: Gold Prices Plummet, World Anxiously Awaits Signals from the US

Jakarta, CNBC Indonesia - Gold and silver prices eased due to limited diplomatic progress in ending the United States (US)-Israel war against Iran. Markets are also highlighting several important central bank meetings this week to gauge the economic impact of the conflict. According to Refinitiv, gold prices closed at US$4,681.85 per troy ounce on Monday (27/4/2026) trading, down 0.57%. This decline pulled gold back to the US$4,600 level. Yesterday’s closing price also marked the lowest since 6 April 2026. Gold prices began to improve today. On Tuesday (28/4/2026) at 06:31 WIB, it was priced at US$4,689.79, up 0.17%. Slow negotiations have kept oil prices high and heightened inflation concerns. Oil prices rose on Monday due to the ongoing impasse between the US and Iran. West Texas Intermediate (WTI) futures rose 2.09% to US$96.37 per barrel, while the international benchmark Brent surged 2.75% to US$108.23 per barrel. “What we’re seeing is that the market still doubts a strong agreement to reopen the Strait of Hormuz will be reached anytime soon. That’s a problem for gold and silver,” said Bart Melek, Head of Global Commodity Strategy at TD Securities, quoted from Reuters. A mediation source from Pakistan said efforts to bridge differences between the US and Iran are ongoing, after President Donald Trump cancelled his envoys’ trip and stated that Iran must reach out if it wants to reach an agreement. “With inflation double the target, it will be very difficult for the US central bank to cut interest rates in the coming months, and that’s negative for gold,” Melek added. The rise in energy prices adds to inflation concerns. Although gold is known as a hedge against inflation, high interest rates reduce the appeal of assets that yield no returns. Markets are also awaiting the US Federal Reserve’s decision at its meeting on Tuesday and Wednesday this week. This month’s meeting is Jerome Powell’s last as Fed Chair. Investors are also monitoring a series of other major central bank meetings this week for indications on interest rate directions and the war’s impact on the global economy.