Gold and Silver Prices Soar Again, Thanks to America!

Gold and silver prices surged, buoyed by positive news from the United States (US). According to Refinitiv, gold prices closed at US$ 4,053.89 per troy ounce on Tuesday (14/7/2026), jumping 1.33%. This increase marked a recovery after prices slumped 2.9% on Monday. On Wednesday (15/7/2026) at 06:38 WIB, the price was nearly stagnant, weakening slightly by 0.008% to US$ 4,053.59 per troy ounce. The rally was triggered by US inflation data coming in lower than expected, sparking hopes that the Federal Reserve (The Fed) will adopt a more dovish stance on interest rate policy. The surge was also supported by a 0.66% weakening of the US dollar index to 100.919, making gold cheaper for holders of other currencies. US inflation slowed to 3.5% year-on-year (yoy) in June from 4.2% in May, while core monthly inflation remained at 0%, lower than market expectations. On a monthly basis, the Consumer Price Index (CPI) recorded a deflation of 0.4%, exceeding expectations of a 0.1% decline. This was the first deflation since May 2020 and the largest monthly contraction since April 2020, or the start of the Covid-19 pandemic. The data prompted market participants to reverse course, cancelling expectations of a Fed rate hike at the late July meeting. ‘Gold prices soared after US CPI data came in much lower than expected. Headline inflation fell sharply, while core inflation was unchanged. This is expected to slash expectations for a Fed rate hike, at least at the July and September meetings,’ said Tai Wong, an independent metals analyst, to Reuters. However, Fed Chair Kevin Warsh stressed that the central bank’s priority remains returning inflation to the 2% target. Investors are now awaiting the release of the US Producer Price Index (PPI) on Wednesday for further clues on the direction of monetary policy. Meanwhile, US-Iran tensions heated up again after Iran fired ballistic missiles at a US military base in Jordan. The US military also launched a five-hour assault on Iranian targets amid a struggle for control of the Strait of Hormuz. The tensions pushed oil prices to a four-week high and could potentially reignite inflationary pressures. Silver prices also soared. According to Refinitiv, silver prices closed at US$ 58.63 per troy ounce on Tuesday, surging 1.7%. This increase was a welcome recovery after prices plunged 3.7% on Monday. On Wednesday at 06:38 WIB, silver prices strengthened 0.23% to US$ 58.76 per troy ounce.