Global Gold Prices Surge Over 3 Percent

NEW YORK - Global gold prices strengthened at the close of trading on Tuesday (31/3/2026) local time, or Wednesday (1/4/2026) morning WIB, although they remain on track for the deepest monthly decline since October 2008.

The rise in gold prices occurred amid growing optimism about the easing of conflict in the Middle East. However, concerns over persistent inflation and expectations of high interest rates due to the impact of the war continue to weigh on the precious metal.

Quoting Reuters, the spot gold price rose 3.2 percent to $4,652.31 per ounce, the highest level since 20 March. Meanwhile, US gold futures closed up 2.7 percent at $4,678.60 per ounce.

The strengthening of gold also occurred alongside the weakening of the US dollar.

The weakening US dollar makes gold prices cheaper for holders of other currencies, thereby increasing investor interest in the yellow metal.

“In the long term, the underlying trend remains bullish, with key fundamental support such as de-dollarisation and ongoing central bank purchases,” he added.

On the other hand, a Wall Street Journal report stated that US President Donald Trump is willing to end the military campaign against Iran even though the Strait of Hormuz remains largely closed.

Meanwhile, US Secretary of Defense Pete Hegseth said the coming days will be decisive in the conflict and warned Iran that the war could intensify further if no agreement is reached.

Throughout March 2026, gold prices fell around 11.8 percent, pressured by the surge in energy prices due to the Middle East conflict that heightened inflation concerns.

From the projection side, BMI maintains its forecast for gold prices in 2026 at an average of $4,600 per ounce. Meanwhile, Goldman Sachs still projects that gold prices could reach $5,400 per ounce by the end of 2026.