Global Gold Price Rebounds to 4,500 US Dollars, Driven by Buying Spree

KOMPAS.com – The global gold price has reversed course and strengthened, with the potential to record its first weekly increase since the outbreak of the United States (US)–Israel conflict with Iran.

This strengthening occurred amid bargain buying when prices were low, after the precious metal had been under pressure in recent weeks.

On Friday (27/3/2026) local time, the gold price surged up to 4.1 percent and broke through the 4,550 US dollars per ounce level. This increase also trimmed the decline from the previous session.

This situation has triggered market concerns that the US central bank, the Federal Reserve (The Fed), will raise interest rates to curb inflation.

Interest rate hikes serve as a negative sentiment for gold because this precious metal does not provide yields (non-yielding asset), making it less attractive compared to interest-bearing instruments.

Since the conflict began on 28 February 2026, the gold price has fallen nearly 15 percent. Its movements have also tended to align with stocks, while being inversely related to oil prices.

TD Securities analysts assess that gold is currently traded more like a risk asset.

The United States and Israel are reported to have attacked Iranian nuclear and steel facilities. In retaliation, Iran launched attacks in the Persian Gulf region.

This situation has pressured global financial markets while pushing oil prices higher.

The escalation occurred after former US President Donald Trump stated he would delay attacks on Iranian energy facilities for 10 days. This statement temporarily provided room for gold prices to recover.

In recent years, central bank gold purchases have been one of the main supports for the precious metal’s price rally.

If similar steps are followed by other central banks, the pace of global gold buying could slow. This also raises doubts about the assumption that central banks tend to be reluctant to release their gold reserves.