Gold and Silver Prices Shine Brighter, Forecasted to Reach US$5,000

Gold and silver prices experienced a rebound following the decline at yesterday’s close on Tuesday (29/4/2026). Gold rose again due to the fall in the DXY index and the easing of the US10Y. According to Refinitiv, gold closed at US$4,621.59 per troy ounce on Thursday’s trading (30/4/2026), up 1.76% after gold had fallen for three consecutive days, weakening by 3.55% in the previous session. Gold strengthened further today. On Friday (1/5/2026) at 06:46 WIB, gold climbed 0.24% to US$4,632.80 per troy ounce. The decline in the dollar’s exchange rate was triggered by strong signals from Japanese monetary authorities planning to intervene in the market to stabilise the yen. This condition provides a boost to gold as assets priced in dollars become cheaper for buyers using other currencies. At the same time, global oil prices have slightly eased after briefly touching US$126 per barrel, the highest level at the start of the Middle East war, although concerns over energy inflation remain a dominant risk factor in the commodities market. From an economic fundamentals perspective, gold’s appeal is still limited by prospects of tight central bank interest rate policies. US Personal Consumption Expenditures (PCE) data showed a 0.7% surge last month, recording the fastest growth since mid-2022. This strengthens concerns that inflation will remain high amid uncertainties from the conflict in Iran, forcing the Federal Reserve and the Bank of England to maintain high interest rates or even tighten further if the situation worsens. Although gold serves as a hedging instrument, rising interest rates tend to reduce investor interest by increasing the opportunity cost compared to interest-bearing assets. Despite short-term selling pressure due to geopolitical uncertainties in the Middle East, analysts still see long-term recovery potential for gold as a safe asset. Citi’s projections indicate a fairly stable short-term price target of $4,300, with potential to reach $5,000 within the next 6 to 12 months as market confidence returns to safe-haven assets. Overall, the current dynamics show that although gold has recorded a monthly decline of around 0.84%, price volatility remains high due to the interplay between global inflation risks and geopolitical tensions.