Global Gold Prices Plunge Over 4%, Pressured by Expectations of High Interest Rates
NEW YORK, KOMPAS.com - Global gold prices weakened sharply again at the close of trading on Thursday (19 March 2026) local time, or Friday (20 March 2026) morning WIB, extending the downward trend to seven consecutive days.
Citing Reuters, the spot gold price fell 4.3% to $4,612.21 per ounce, marking the lowest level since early February 2026.
Meanwhile, US gold futures for April delivery closed down 5.9% at $4,605.70 per ounce.
The decline in gold prices comes amid rising inflation concerns due to surging energy prices following the escalation of conflict in the Middle East.
“Gold is now in a heavily owned position by institutional investors, driven by the trend of currency weakening over the past year. However, the foundation of that trend is now starting to weaken,” said TD Securities commodity strategy analyst Daniel Ghali.
“For the short term, we still see downside risks. There is still considerable room for gold to fall without damaging its long-term bullish trend,” he added.
As a safe-haven asset, gold is typically sought after during high inflation and increasing geopolitical uncertainty.
However, because it offers no yield, gold’s attractiveness tends to diminish when interest rates are at high levels.
Almost all major central banks in advanced economies maintained their interest rates this week.
However, they emphasised their readiness to curb inflation if the surge in energy prices due to the war between the US-Israel and Iran continues.
On the other hand, Brent crude oil prices surged above $110 per barrel after Iran attacked energy facilities in the Middle East region, following Israel’s strike on the South Pars gas field.
Additionally, a US official and several sources indicated that the Trump administration is considering deploying thousands of additional troops to the Middle East, as the conflict with Iran potentially enters a new phase.
Analysts from SP Angel noted that the weakening of gold was also triggered by profit-taking and the strengthening of the US dollar.
After a strong rally throughout 2025, investors are now locking in profits and shifting funds to other assets such as energy commodities amid market volatility.
Other precious metals also experienced declines.
The spot silver price fell 5.3% to $71.39 per ounce, platinum weakened 3.7% to $1,949.20 per ounce, and palladium dropped 2.4% to $1,440.29 per ounce.