Gold and Silver Prices Finally Rebound
Gold and silver prices reversed course to strengthen on Thursday after United States (US) inflation data was released in line with market expectations. This condition eased some concerns that the Federal Reserve (The Fed) would soon raise interest rates, while also encouraging a weakening of the US dollar and US government bond yields.
Citing Refinitiv, the price of gold closed at US$4,026 per troy ounce on Thursday (25/6/2026). The price strengthened by 0.63%. This gain erased gold’s 4.53% plunge over the previous two consecutive days. The gold price continued to strengthen on Friday (26/6/2026) at 06.27 Western Indonesia Time, with gold at US$4,027.52 per troy ounce, up 0.04%.
“The PCE data appeared to be largely in line with expectations. That is one of the reasons why gold prices were relatively stable today,” said David Meger, Director of Metals Trading at High Ridge Futures, to Reuters. The US Personal Consumption Expenditures (PCE) price index surged 4.1% in the 12 months through May. This figure represents the largest increase and the first time PCE inflation has breached the 4% level since April 2023. This result was in line with projections from economists surveyed by Reuters.
After the data was released, the US dollar began to weaken, making dollar-priced gold cheaper for overseas buyers. US government bond yields also edged lower. Based on CME FedWatch data, market participants now see an 80% chance that the Fed will raise interest rates in December. That figure is down from 85% before the PCE data was released, but still higher than the 61% before the Fed’s policy statement last week.
“The market’s primary focus will remain on future inflationary pressures. That is one of the reasons why gold prices have continued to weaken in recent trading sessions,” Meger added. On Wednesday, the gold price had fallen below US$4,000 per troy ounce for the first time since November 2025. The decline was triggered by rising expectations of a rate hike this year after the Federal Reserve conveyed a more hawkish policy tone in its meeting last week.
Although gold is known as a hedge against inflation, higher interest rates tend to reduce the appeal of the precious metal as investors shift to assets offering yield. Meanwhile, oil prices rose slightly. However, expectations of increased supply from the Middle East following a deal to end the Iran war have pushed oil prices back to pre-war levels.