Gold Prices Experience Severe Volatility! Dramatic Swings Leave the World Anxious

Gold prices have crashed after previously soaring. The price weakened as investors assessed the latest signals regarding the US-Iran situation and its impact on interest rate prospects.

According to Refinitiv, gold prices closed at US$4,789.94 per troy ounce on Wednesday’s trading (15/4/2026), down 0.96%. This decline followed a 2% surge in gold prices on Tuesday’s trading.

Gold prices improved today. On Thursday (16/4/2026) at 06:26 WIB, gold prices jumped 9.46% to US$4,813.29 per troy ounce.

“Gold and silver are only experiencing light and reasonable profit-taking after reaching highs overnight,” said Jim Wyckoff, senior analyst at Kitco Metals, quoted from Reuters.

He added that gold prices have recently risen when risk appetite improves and fallen when markets tend to avoid risk, contrary to gold’s traditional role as a safe-haven asset. According to him, market participants are now more focused on the impact of tighter monetary policy and inflationary pressures.

US President Donald Trump stated that the war he launched with Israel against Iran is nearly over, as Pakistan’s military chief arrived in Tehran as a mediator to prevent the conflict from heating up again.

Chicago Fed President Austan Goolsbee said on Tuesday that the Federal Reserve might have to wait until 2027 to cut interest rates if a sustained oil price surge due to the Iran war hinders inflation from falling to the US central bank’s 2% target.

Markets currently estimate a 32% chance of US interest rate cuts this year.

Higher interest rates typically pressure gold because they increase the opportunity cost of holding non-yielding assets, thereby reducing the appeal of the precious metal as an inflation hedge.