Global Gold Price Records Worst Week Since 1983 Amid Geopolitical Tensions

JAKARTA - Global gold prices experienced sharp pressure this week amid rising geopolitical uncertainty due to the United States (US) and Israel’s conflict with Iran. Over the past week, this precious metal even recorded its worst performance since 1983. Citing CNN on Tuesday (24/3/2026), global gold prices fell around 11% throughout the last week. If calculated since the start of the US-Iran conflict, gold prices have corrected by more than 14%. This situation is quite contrasting, considering gold has long been known as a safe-haven asset that typically strengthens during crises. Investors generally seek gold to protect asset values from surges in inflation, currency weakening, or economic turbulence. Rising energy costs are pushing central banks, including the US Federal Reserve (The Fed), to be more cautious in easing monetary policy. The market now expects interest rates to remain high for longer. Based on CME FedWatch data, market participants predict no further interest rate cuts this year. Expectations of high interest rates are increasing the attractiveness of yield-based instruments like bonds, thereby reducing interest in gold, which offers no yield. Additionally, the strengthening of the US dollar is further pressuring gold prices. In recent weeks, the dollar index has strengthened in line with rising demand for US dollar-based assets.