Global Gold Prices Fall Under Pressure as Dollar Strengthens and U.S. Treasuries Rally

New York — Global gold prices fell by more than 1 percent at the close of trading on Tuesday (19 May 2026) local time, or Wednesday (20 May 2026) morning WIB. The fall was driven by a stronger U.S. dollar and higher yields on U.S. government bonds amid ongoing global inflation concerns that continue to haunt the markets. Citing Reuters, spot gold fell 1.4 percent to $4,503.98 per ounce. The yellow metal even touched a session low not seen since 30 March 2026 at the start of trading. Marex analyst Edward Meir said higher real interest rates in many countries are the primary factor weighing on gold right now. ‘We are seeing higher real interest rates in many countries around the world, and that really weighs on gold. The U.S. dollar is firmer as well, and that is a negative sentiment,’ Meir said. The 10-year U.S. Treasury yield was near its highest level in more than a year. Meanwhile, the U.S. dollar index also rose as market participants expect the Federal Reserve to adopt a more aggressive stance to curb inflation driven by higher energy prices. The rise in yields makes holding gold more expensive since the precious metal does not yield. At the same time, a firmer U.S. dollar makes gold more expensive for holders of other currencies, reducing demand for gold. Brent crude oil prices remain elevated due to concerns about global energy supply, further heightening inflation risk worldwide. The surge in fuel prices is seen as compelling central banks to keep interest rates higher for longer to curb price pressures. Although gold is known as a hedge against inflation, it is often pressured in a high-interest-rate environment. Markets now expect room for rate cuts in 2026 to be increasingly limited.