Gold Prices Plunge to Three-Week Low: US$4,900 Level Now a Distant Memory
Jakarta, CNBC Indonesia - Gold prices dropped to their lowest level in more than a week on Thursday. Gold was pressured by concerns that the inflationary impact from the conflict in the Middle East could keep interest rates elevated for longer.
According to Refinitiv, gold prices closed at US$4,692.69 per troy ounce on Thursday’s trading (23/4/2026), down 0.95%. Yesterday’s closing price was the lowest since 6 April 2026, or nearly three weeks ago.
Gold prices improved slightly today. On Friday (24/4/2026) at 06:43 WIB, the price rose 0.12% to US$4,698.27 per troy ounce.
Independent analyst Tai Wong stated that tensions between the United States and Iran have sparked fears that a ceasefire could collapse at any moment, causing oil prices to surge sharply and dragging down other assets, including gold.
“Gold, which was approaching US$4,900 last Friday, now feels like a distant memory as the metal’s rally begins to fade,” he said to Reuters.
Iran demonstrated increasingly tight control over the Strait of Hormuz on Thursday through a video of commando forces boarding a large cargo ship, following the failure of peace talks that Washington had hoped would reopen the world’s most important shipping lane.
The Iran war has driven up oil prices, with Brent crude trading above US$100 per barrel on Thursday.
Brent oil prices surged again and closed up more than 3% at US$105.07 per barrel, the highest since 7 April 2026. Meanwhile, the US dollar index jumped to 98.77, the highest since 9 April 2026.
The surge in energy prices tends to drive inflation, thereby increasing the likelihood of interest rate hikes. Although gold is known as a hedge against inflation, higher interest rates reduce the attractiveness of non-yielding assets like gold.
A Reuters survey of economists indicates that the Federal Reserve is likely to wait at least six months before cutting interest rates this year.
Additionally, the strengthening US dollar also pressured gold, as it makes dollar-denominated bullion more expensive for holders of other currencies. The yield on 10-year US government bonds also rose to its highest level in more than a week, increasing the opportunity cost of holding non-yielding gold.