Gold Prices Plunge Over 2%, Fall to Two-Week Low
Gold prices tumbled again, triggered by the strengthening of the US dollar and rising bond yields, as well as developments in the war.
According to Refinitiv, gold prices closed at US$4,711.67 per troy ounce on Tuesday (21 April 2026). The price fell 2.24%.
This weakness extended gold’s suffering, weakening 2.4% over the last two days. Yesterday’s closing price was also the lowest since 7 April 2026, or the last two weeks.
Gold prices improved slightly today. On Wednesday (22 April 2026) at 06:29 WIB, gold prices rose 0.45% to US$4,732.59 per troy ounce.
Gold prices plunged due to the renewed strengthening of the dollar index. The index strengthened 0.2% and closed at 98.394 in yesterday’s trading, up from 98.097% the previous day.
The strengthening US dollar makes gold, denominated in dollars, more expensive for holders of other currencies. At the same time, the yield on 10-year US government bonds also rose.
“Stronger yields and the dollar are pressuring gold, plus many headlines and mixed signals regarding the Iran situation are driving up energy prices, thus pressuring precious metals,” said Bob Haberkorn to Reuters.
Financial markets were volatile ahead of the market close, with anxiety rising on Wall Street after reports emerged that Vice President JD Vance’s trip to join negotiations with Iran was postponed due to a lack of commitment from Tehran. This was reported by The New York Times and Axios, citing US officials.
Shortly after the US stock market closed, President Donald Trump stated that the ceasefire would be extended until a proposal from Iran is submitted.
Both factors also had a significant impact on gold.
Market participants are also monitoring the ongoing hearing of the US Senate Banking Committee with Federal Reserve Chairman nominee Kevin Warsh.
Warsh called for a “regime change” at the US central bank, including a new approach to controlling inflation and an overhaul of communication strategy so that Fed officials do not give too many signals about the direction of monetary policy.
Warsh emphasised that he never promised US President Donald Trump to cut interest rates if he officially leads the central bank. That statement was made during the confirmation hearing in the US Senate, as global markets focus on the future direction of monetary policy in the Land of Uncle Sam.
Warsh said Trump never asked for a commitment on interest rate levels, even though Trump had repeatedly stated his hope that Warsh would lower rates if selected.
Warsh’s statement is bad news given that gold traders hope the Fed will soon cut interest rates.
“Traders will scrutinise every comment. With this hearing, volatility is expected to be very high,” added Haberkorn.