Global Gold Prices Fall Again, Here's the Trigger

JAKARTA, KOMPAS.com - Global gold prices weakened at the end of trading on Wednesday (13/5/2026) local time, or Thursday (14/5/2026) morning WIB. According to Reuters, spot gold prices fell 0.6% to $4,686.435 per ounce. This marks a decline for two consecutive days. Meanwhile, US gold futures weakened 0.4% to $4,706.70 per ounce. The drop in gold prices was triggered by inflation concerns, potential interest rate cuts, and the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. These conditions signal that inflation continues to rise amid the Iran war. Vice President and Senior Metals Strategist at Zaner Metals, Peter Grant, stated that persistently high inflation strengthens expectations that US interest rates will remain high for longer. This situation has pressured gold prices over the past two days. “And that has pressured gold prices over the past two days,” he said in a statement. As is well known, gold has long been recognised as a hedge against inflation. However, rising interest rates tend to reduce the appeal of the precious metal because gold does not provide returns. Additionally, US consumer inflation data for April also showed continued increases, with the largest annual rate in the past three years. The US Federal Reserve central bank last month maintained its benchmark interest rate in the range of 3.50% to 3.75%. Based on CME Group FedWatch, market participants now have increasingly low expectations for interest rate cuts this year.