Breaking! Gold Prices Plummet 6%, Fall to US$4,200 Level
Jakarta, CNBC Indonesia - Gold prices have plummeted and fallen to the US$4,200 level for the first time since November 2025.
According to Refinitiv, gold was trading at US$4,226.57 per troy ounce, down 5.8% on Monday (23/3/2026) at 14:01 WIB.
Gold prices today even fell as much as 7.3% and were traded at US$4,161.89 per troy ounce. This level is the lowest since November 2025.
Last week, gold prices plunged 10.58%. This decline is the largest since the week ending 4 March 1983, or 43 years ago.
Gold prices have tumbled in line with escalating conflicts in the Middle East, which have triggered inflation concerns and prompted expectations of higher global interest rates.
“With the Iran conflict entering its fourth week and oil prices holding around US$100 per barrel, market expectations have shifted from rate cuts to potential rate hikes, reducing gold’s attractiveness in terms of yield,” said Tim Waterer, head of market analysis at KCM Trade, quoted from Reuters.
Iran on Sunday stated it would attack the energy and water systems of Gulf countries in retaliation if US President Donald Trump continues his threat to strike Iran’s power grid within 48 hours.
Asian shares fell, while oil prices remained well above US$110 per barrel.
“Gold’s high liquidity seems to be working against it amid this risk-off environment. The stock market decline has led investors to unwind gold positions to cover margin calls on other assets,” Waterer added.
The closure of the Strait of Hormuz is keeping oil prices high, triggering inflation fears due to rising transportation and manufacturing costs. Although inflation typically boosts gold’s appeal as a hedge, high interest rates are pressuring demand for non-yielding assets.
“The increasingly strong shift from safe-haven allocations to macro-factor-based positions could drive further downside risks, alongside a strengthening US dollar and declining chances of Fed policy easing,” said BMI, a unit of Fitch Solutions.
Market expectations for interest rate hikes by the Federal Reserve this year have surged sharply.
Futures contracts indicate that the US central bank is now more likely to raise rates than cut them by the end of 2026, according to CME’s FedWatch tool.
These expectations have sent the dollar index soaring to 99.85. Gold purchases are denominated in US dollars, so a rising dollar will limit gold demand.