Global Gold Prices Continue to Weaken, Pressured by Expectations of High Global Interest Rates
NEW YORK - Global gold prices weakened at the close of trading on Tuesday (24/3/2026) local time, or Wednesday morning (25/3/2026) WIB, as expectations of high interest rates grew amid geopolitical tensions in the Middle East.
Citing Reuters, the spot gold price fell 0.4 per cent to 4,389.26 US dollars per ounce, after hitting its lowest level since November in Monday’s trading.
Meanwhile, US April gold futures settled down 0.1 per cent at 4,402.00 US dollars per ounce.
The decline in gold prices comes amid concerns over inflation due to rising energy prices triggered by the Middle East conflict. This situation is fuelling expectations that global interest rates will remain high, thereby pressuring gold’s attractiveness.
“If the war continues and energy prices keep rising, it’s not good news for gold,” said Bart Melek, Global Head of Commodity Strategy at TD Securities.
“Gold is likely to remain under pressure in the second quarter, but by year-end the outlook could become very attractive again, as we expect central banks like the Fed to have more room to manoeuvre, and we could see the dollar weaken and interest rates fall,” he added.
On the other hand, diplomatic efforts are emerging to ease the conflict. Pakistan’s Prime Minister has expressed willingness to host negotiations between the United States and Iran to end the war.
The statement came a day after US President Donald Trump delayed threats of attacks on Iran’s power facilities.
This Middle East conflict has disrupted about one-fifth of global oil and liquefied natural gas supplies passing through the Strait of Hormuz, driving up energy prices and strengthening inflationary pressures.
Major central banks worldwide have also affirmed their readiness to act if price surges become more widespread.
Commerzbank analysts view the current gold price decline as likely an overreaction, following a sharp surge earlier in the year.
“The recent price drop is likely as excessive as the big rise at the start of the year. In a sense, the pendulum has swung from one extreme to the other for gold,” Commerzbank analysts wrote in their note.
For other precious metals, the spot silver price rose 0.4 per cent to 69.43 US dollars per ounce, platinum strengthened 1 per cent to 1,900.13 US dollars per ounce, while palladium fell 2.1 per cent to 1,403.75 US dollars per ounce.