Global Gold and Silver Prices Plummet Amid Oil Surge and Global Inflation Risks

JAKARTA — Global gold and silver prices have faced sharp pressure in recent times, alongside a surge in world oil prices and rising concerns over inflation stemming from geopolitical conflicts in the Middle East. This situation has driven changes in investor expectations regarding the direction of interest rate policies by major central banks worldwide. According to Reuters on Friday (20/3/2026), the global gold price fell by more than 4 per cent in a single trading session, reaching around $4,612 per ounce, its lowest level in over a month. Similar pressure has been experienced by other precious metals. The silver price weakened by more than 5 per cent to around $71 per ounce. Additionally, industrial metals such as platinum and palladium have also declined amid global commodity market volatility. The rise in oil prices has become the primary factor influencing investor sentiment towards gold and silver. Conflicts involving Iran are seen as triggering disruptions to global energy supplies, thus driving a rally in crude oil prices. This has reduced the attractiveness of gold, which offers no interest yield. In a Reuters report, concerns that inflation from the Middle East conflict could keep interest rates high have become a more dominant factor than gold’s role as a safe-haven asset. The oil price surge has also bolstered the US dollar. Since gold is priced in dollars, the strengthening of the currency makes gold more expensive for investors outside the United States, thereby pressuring demand. In addition to macroeconomic factors, the decline in gold and silver prices has been triggered by profit-taking actions following significant rallies in the preceding months. Analysts note that gold prices had surged sharply throughout 2025 and into early 2026, prompting some investors to realise gains when market conditions shifted. After such rapid increases, profit-taking can trigger cascading declines in the commodity markets.