Gold Price Surges 4% in 24 Hours, Hits 50-Day High
Jakarta, CNBC Indonesia - Gold and silver prices surged after the United States (US) dollar weakened and government bond yields fell. Market participants are also closely monitoring developments in the Middle East conflict for further clues on inflation and the direction of interest rates.
According to Refinitiv, the price of gold at the close of trading on Wednesday (5/8/2026) stood at US$4,245.39 per troy ounce. The price soared 4.16% in a single day. This closing position was the highest since 16 June 2026, or a 50-day high. The increase also extends gold’s positive trend, with a gain of 5.06% over the last three days.
Gold prices continued to strengthen today. On Thursday (6/8/2026) at 06:36 Western Indonesian Time (WIB), the price of gold rose 0.38% to US$4,260.59 per troy ounce. The strengthening of gold was driven by the weakening of the US dollar and a decline in the yield on 10-year US government bonds. The dollar index closed at 99.67, its lowest since 16 June 2026. A weaker dollar makes gold cheaper for overseas buyers. US Treasury yields also fell to 4.617%, a seven-day low. Gold offers no yield, so falling bond yields make the metal more attractive.
‘Two days of falling bond yields and a week of a weakening US dollar appear to have removed various obstacles that were holding back gold and silver,’ independent metals trader Tai Wong told Reuters. Additional sentiment came from US employment data, which showed private payroll growth added only 44,000 jobs in July, far below market expectations of 70,000.
On the other hand, several Federal Reserve officials are still open to the possibility of raising interest rates to curb inflation. Market participants currently see a 57% chance of a rate hike at the September meeting. Although the prospect of higher interest rates typically pressures gold because it offers no yield, the precious metal continues to find support from the weakening dollar and falling bond yields.
Positive news also came from the Middle East, where a peace agreement is drawing closer. While war can be a boon for gold, a prolonged conflict could trigger inflation, potentially leading to higher interest rates.