Global Gold Prices Plunge to Four-Month Low as Oil Prices Rise

JAKARTA, KOMPAS.com - Global gold prices have faced intense pressure in recent days, driven by escalating geopolitical tensions in the Middle East and market concerns over a surge in global inflation.

This decline occurs amid shifts in expectations for global monetary policy, a strengthening US dollar, and rising bond yields, which diminish the appeal of precious metals as safe-haven assets.

According to Reuters on Monday (23/3/2026), spot gold prices fell more than 2% early this week, reaching the lowest level in nearly four months.

Cumulatively, global gold prices have dropped over 10% in the past week.

US gold futures for April 2026 delivery plunged even deeper, by around 4.5%, signalling strong selling pressure in the commodities derivatives market.

The weakening of global gold prices coincides with the escalation of conflicts involving Iran, the United States (US), and Israel.

The Brent crude oil benchmark price, for instance, has been reported to trade above $110 per barrel amid fears of energy supply disruptions in the Gulf region.

This significant rise in energy prices has led market participants to adjust their expectations regarding the direction of monetary policy by major central banks.

Whereas investors previously anticipated interest rate cuts, some market players are now factoring in the possibility of further monetary tightening.

Precious metals have historically been regarded as inflation hedges, but rising interest rates can reduce their attractiveness since gold offers no yield.

On the other hand, the prolonged conflict is also triggering a surge in global energy costs.

According to The Economic Times, global oil prices have jumped up to 50% since the conflict began, reinforcing concerns that inflationary pressures may persist longer than previously anticipated.