Gold and Silver Prices Take a Beating from Hot News out of Hormuz
Gold and silver prices are forecast to move volatily this week due to rising tensions in the Middle East. Price movements will also be influenced by a series of macroeconomic data releases that will determine whether the price rally continues or experiences a correction.
According to Refinitiv, the gold price on Monday (20 April 2026) at 06:27 WIB immediately plunged 1.23% to US$4,769.13 per troy ounce. Gold was once again thrown off the US$4,800 per troy ounce level.
This weakening contrasts with a 0.85% surge to US$4,828.3 per troy ounce on Friday last week.
Over the past week, gold prices rose 1.7%. This means gold has strengthened for four consecutive weeks.
The weakening of gold is triggered again by the strengthening oil price. This surge is feared to stoke inflation, leading the US Federal Reserve to hold off on interest rate cuts.
Crude oil prices jumped in early trading this Monday (20 April 2026) at 06:01 WIB. West Texas Intermediate (WTI) futures surged 6.9% to US$89.61 per barrel. Meanwhile, international Brent also strengthened 5.6% to US$95.49 per barrel.
This rise contrasts with Friday, when oil prices plunged 10% in a single day on Friday (18 April 2026).
The oil price surge has caused the dollar index to strengthen again. The dollar index was at 98.24 on Monday morning after dipping to 98.08.
Gold purchases are denominated in dollars, so a rising US dollar can reduce interest in buying gold.
Traders will monitor crude oil prices as well as major US economic data, including retail sales, housing data, and consumer sentiment. Initial PMI figures for manufacturing and services from major economies such as the UK and US will also draw investor attention.
Meanwhile, the ceasefire between the US and Iran is scheduled to end on 22 April, which could further influence market sentiment.
Pranay Mer, Vice President EBG - Commodity & Currency Research at JM Financial Services Ltd, said ETF investors returned to precious metals last week after major liquidation in March. Silver continues to be supported by positive industrial metals sentiment, particularly copper, as well as projections of a supply deficit for another year.
Gold market participants will also monitor the US Senate confirmation hearing for Kevin Warsh as the new Federal Reserve Chair, scheduled for Tuesday. Warsh is expected to deliver a dovish tone on monetary policy easing, which could provide additional support for precious metals prices.