Gold Price Battered, Falls to US$4,100 Level: Beware!
Jakarta, CNBC Indonesia - Gold prices weakened under pressure from hawkish policy signals from The Federal Reserve (The Fed) and a strengthening United States dollar.
Meanwhile, a ceasefire agreement between the US and Iran that eased inflation concerns and pushed down oil prices also limited gold’s appeal.
Citing Refinitiv, gold prices on Thursday (18/6/2026) closed at US$4,208.59 per troy ounce, a drop of 1.15%. This decline extended gold’s suffering, which had fallen 2.8% over two consecutive days. Yesterday’s closing price was also the lowest since 10 June 2026.
Today, gold prices fell further. On Friday (19/6/2026) at 06:42 Western Indonesia Time, gold was at US$4,195.31 per troy ounce, weakening 0.32%.
“The most significant factor is the change in the Fed’s tone to a more hawkish stance yesterday. That drove the US dollar to a new high for the year and keeps gold under pressure,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, to Reuters.
The Fed held its benchmark interest rate steady on Wednesday, but nine of the 19 central bank officials projected that a rate hike would still be needed before the end of the year. The dollar index soared to 100.89, its highest record since May 2025. The stronger dollar makes gold, which is traded in dollar denominations, more expensive for overseas buyers.
Markets now see an 85% probability of a US rate hike in December, based on the CME FedWatch Tool. This figure has jumped sharply from the 61% probability before the Fed’s policy decision was announced.
As a non-yielding asset, gold is typically less attractive when interest rates are high. Gold prices have also been under pressure since the outbreak of conflict in the Middle East, as the surge in energy costs triggered inflation fears.
The US and Iran on Thursday released the text of an interim agreement signed by both presidents the previous day to end the war. US President Donald Trump also warned that he would continue attacks and target Iranian officials if Tehran fails to meet its commitments under the agreement.