Global Gold Price Recovers, Rises 2 Percent as Oil Prices Correct

The global gold price recovered alongside the decline in global oil prices, easing market concerns over prolonged inflationary pressures. This sentiment emerged amid reports that the United States (US) is pursuing a peace proposal to Iran to end the conflict in the Middle East. The spot gold price was recorded to have risen nearly 2 percent to US$4,551.50, equivalent to Rp76.65 million (estimated exchange rate of Rp16,840 per US dollar) per troy ounce during Wednesday’s trading session, 25 March 2026. Meanwhile, April gold futures surged more than 3 percent to US$4,565.60, or approximately Rp76.89 million per troy ounce. The strengthening of gold occurred as energy market tensions eased. Oil prices, which had previously surged due to regional conflicts, began to correct, thereby reducing concerns over global inflation that had been driving market volatility. US President Donald Trump claimed that his country is negotiating with Iran. He even stated that Tehran is showing positive signals for reaching a peace agreement. “They are talking to us, and they are talking sensibly,” Trump said in his statement from the Oval Office, quoted from CNBC International, Thursday, 26 March 2026. Trump also decided to hold back plans for strikes on Iran’s energy infrastructure due to the negotiation process. “I have decided to back off from the threat of attack because of the fact that we are negotiating,” he said. However, Iran dismissed the existence of peace discussions with Washington. “As we have always said… there will be no deal with you. Not now. Never,” emphasised Iran’s military spokesperson, Ebrahim Zolfaqari. The Tehran government confirmed that it will continue to keep the Strait of Hormuz open to non-hostile vessels. This route is a vital global oil shipping lane that had been disrupted for nearly four weeks since the conflict erupted. “Non-hostile vessels that are not involved in aggressive operations against Iran and comply with safety rules can pass safely through the Strait of Hormuz,” the Iranian government wrote in its official statement. Co-head of Global Commodities Research at Goldman Sachs, Daan Struyven, stated that rising interest rate expectations and market volatility were the main factors pressuring gold prices previously. He added that the rise in interest rate expectations also pressured investor demand, particularly through gold-based ETFs that are highly sensitive to interest rate changes.