Global Gold Prices Fall as Market Participants Monitor US-Iran Conflict Direction and Fed Policies

NEW YORK, KOMPAS.com - Global gold prices weakened at the close of trading on Wednesday (15 April 2026) local time, or Thursday morning (16 April 2026) Western Indonesia Time, after previously touching a one-month high. Market participants are now monitoring the latest developments in the conflict between the United States (US) and Iran and its implications for the direction of interest rates. Citing Reuters, the spot gold price fell 0.9% to $4,798.89 per ounce, after reaching the highest level since 18 March in the previous session. Meanwhile, US gold futures weakened 0.5% to $4,823.60 per ounce. According to analysts, recent gold price movements have tended not to align with its role as a hedge or safe-haven asset. “Gold prices strengthened due to increased risk appetite but fell during risk aversion in recent sessions. This is contrary to gold’s traditional role as a safe-haven asset. Currently, market participants are more focused on the implications of tighter monetary policy and inflation pressures,” they explained. US President Donald Trump stated that the war involving Israel and Iran is nearing its end. Meanwhile, mediation efforts continue after the head of Pakistan’s military arrived in Tehran to prevent the conflict from reigniting. In the energy market, oil prices rose slightly as shipments through the Strait of Hormuz remain limited. Uncertainty remains high despite a two-week ceasefire, after Iran previously closed the route for 45 days. Chicago Federal Reserve President Austan Goolsbee said the US central bank, the Federal Reserve (the Fed), may have to delay interest rate cuts until 2027 if oil prices stay high and hinder inflation from falling to the 2% target. Currently, the market estimates a 32% chance of the Fed cutting rates this year. Interest rate hikes tend to pressure gold prices by increasing the opportunity cost of holding non-yielding assets, thus reducing its attractiveness as an inflation hedge. As for other precious metals, prices moved variably. The spot silver price fell 0.2% to $79.40 per ounce, platinum rose 0.8% to $2,119.52, while palladium weakened 1.1% to $1,570.10 per ounce.