Gold Prices Plunge for Seven Consecutive Days: To US$4,600 - Lowest in Two Months

Jakarta - Gold prices continued their decline in the latest trading session. According to Refinitiv data, gold closed at US$4,648.23 per troy ounce on Thursday (19/3/2026), down 3.51%. Yesterday’s closing price was the lowest since 16 January 2026, or two months ago. This weakness has worsened gold’s record of plunging for seven consecutive days, weakening by 10.5%. Gold prices were almost flat today. On Friday (20/3/2026) at 08:04 WIB, gold rose 0.001% to US$4,648.39 per troy ounce. Looking back, the pressure on gold has been consistent. On 17-18 March, prices were still holding around US$5,000 per troy ounce, before plummeting sharply on 19 March to around US$4,648. This correction marks the longest weakening phase since 2023, while erasing part of the major rally that occurred throughout 2025. The main sentiment comes from the escalation of conflict in the Middle East, which has instead triggered a surge in energy prices. Citing Reuters, gold prices once plunged more than 4% in a single day as oil prices jumped above US$110 per barrel. This energy increase raises global inflation risks and alters market expectations regarding the direction of interest rate policy. In such conditions, major central banks worldwide tend to keep interest rates high for longer. Gold, which does not provide interest returns, becomes less attractive in a high-interest-rate environment. According to TD Securities analyst Daniel Ghali, gold’s previously strong position is now starting to lose its foundation, with downside risks still open in the short term. Besides interest rate factors, pressure also comes from profit-taking actions. After a long rally throughout 2025, market players are beginning to realise profits and shift funds to other assets, especially the energy sector which is becoming attractive again amid the surge in global volatility. The spike in oil and gas prices due to the Iran war has reduced the chances of interest rate cuts in the near term. This situation creates a negative combination for gold: inflation rises, but interest rates remain high, creating double pressure. Meanwhile, silver has also been dragged into the weakening trend, though it is not the main focus. Silver prices were recorded down around 5.3% to around US$71.39 per troy ounce. Even intraday, this metal once fell deeper before trimming losses, reflecting the direction. Gold’s direction will be greatly determined by geopolitical conflict developments and central bank responses to the energy inflation surge. As long as expectations of high interest rates persist, gold’s recovery room is expected to remain limited, although its long-term trend has not fully changed.