Gold Prices Rebound, But Crisis Shadows Loom

Gold prices rose modestly amid global economic uncertainty. The softer US dollar supported prices, offsetting pressure from rising bond yields and inflation fears linked to higher oil prices. According to Refinitiv, gold prices on Monday trading (18 May 2026) closed at US$4,565.09 per troy ounce, up 0.6%. The rise followed a 4.14% plunge over four consecutive sessions. As of 06:38 WIB on Tuesday, 19 May 2026, gold prices advanced 0.48% to US$4,586.86. The dollar index weakened to 99.128 in yesterday’s trade, after hovering at 92.284 the day before. A softer dollar makes bullion cheaper for holders of other currencies because purchases are converted into the US dollar. However, the rise in yields on US Treasuries is expected to cap gains in the near term. Notably, global government-bond yields rose yesterday. The yield on Japan’s 30-year government bonds rose to 4.17%, the highest since the tenor was first issued in 1999. German 30-year Bund yields touched the highest level since 2011, and UK 30-year gilts rose to their highest since 1998. US Treasury yields also climbed to their highest since 2007. Inflation fears intensified as oil prices rose amid the US–Israel conflict with Iran, reinforcing expectations that central banks will raise interest rates. Gold, which yields no income, is typically less attractive when rates are high, as investors switch to higher-yielding assets. Some banks have begun lowering short-term gold price projections; for example, JPMorgan Chase trimmed its forecast for the average gold price in 2026 to US$5,243 per ounce from US$5,708.