Dollar Falls, Gold Prices Rise

Jakarta, CNBC Indonesia - Gold prices strengthened again in early trading this week. The weakening of the US dollar, reduced expectations of a Federal Reserve interest rate hike, and geopolitical tensions continue to support the precious metal.

According to the latest data at 08:44 WIB, gold was trading at US$4,386.76 per troy ounce. The price strengthened by around 0.54% compared to Friday’s close (14/8/2026) of US$4,375.89 per troy ounce.

Compared with trading on the Friday of the previous week, the gold price has risen by around 1.04%. This strengthening shows that gold is still maintaining positive momentum after rebounding sharply from its mid-July low.

The gold price is now only about 0.3% away from the US$4,400 level. Meanwhile, to reach the psychological resistance of US$4,500, gold still needs a rise of around 2.6%.

The weakening of the US dollar remains one of the sources of strength for gold. A cheaper dollar makes gold more affordable for investors using other currencies.

Expectations regarding Federal Reserve policy have also shifted in a way that is more supportive of the precious metal. The market has begun to reduce bets on interest rate hikes after US economic and inflation data did not show pressure that was significantly stronger than expected.

Interest rates that do not rise are usually a positive sentiment for gold. The precious metal does not provide a yield, so its appeal increases when the potential returns from deposits and bonds begin to be limited.

Nevertheless, gold has not completely escaped selling pressure. On 12 August, the price briefly reached US$4,407 before falling back to US$4,350 in the following session. This movement shows that the US$4,400 area is still filled with profit-taking.

The price needs to move past US$4,407 to open the way towards US$4,500. If it is able to break through and hold above US$4,500, room for a rise towards US$4,650-4,750 could open up.

Conversely, failure to hold above US$4,375 could bring gold back to test US$4,350. If that level is also breached, correction pressure could potentially continue towards US$4,240.

In other words, economic weakness, changes in the direction of interest rates and increased geopolitical risk could push gold back towards US$4,500 or higher. Conversely, a strong economy, rising bond yields and a stronger dollar could restrain gold’s movement.

With the price at US$4,386.76, gold’s position is now increasingly close to a decision area. A break above US$4,400 would be an initial signal, but the real victory would only occur if gold is able to hold above US$4,500.