Global Gold Prices Hit Two-Month Low as Investors Abandon Safe Haven Assets?

Global gold prices have come under pressure again, touching a two-month low. The precious metal, traditionally a safe haven asset, has lost its appeal as sentiment improves regarding the US-Iran conflict.

The price drop follows investors shifting funds to higher-yielding assets, while expectations of global central bank rate hikes have also weighed on the metal.

In recent trading, global gold prices fell over 1% following significant selling the previous day, reaching their lowest level since late March 2026.

During geopolitical conflicts, gold typically moves in line with market risk sentiment. However, this week has been different.

“For most conflicts, gold tends to move with risk assets. But this week, conditions have been different. As global markets become more optimistic about the US-Iran situation, gold and silver have struggled to hold,” Investment Live cited on Thursday, 28 May 2026.

Gold is currently below US$252, equivalent to approximately Rp4.43 million per troy ounce at an exchange rate of Rp17,600 per US dollar. This marks the lowest level since 30 March 2026.

Technical analysis shows that gold’s rebound in early May failed to break the 100-day moving average. The market now anticipates further declines towards the 200-day moving average.

“A key technical level at US$249, or around Rp4.38 million per troy ounce, is a critical level to watch, especially as it previously halt sharp drops in March,” the analysts noted.

If this level is breached, selling pressure is expected to intensify in the coming weeks.

In addition to geopolitical factors, shifts in global monetary policy have been a primary cause of gold’s weakness. For nearly two years, gold has been a favoured asset as central banks cut rates.