Gold Prices Recover After Sharp Decline, But Major Storm Still Looms
Gold prices rebounded during Tuesday’s trading, recovering from their lowest levels in more than seven weeks.
According to Refinitiv, gold prices on Tuesday (29/09/2026) closed at US$ 4,180.79 per troy ounce, marking a 1.6% surge. This increase provides much-needed relief after prices plummeted by 4.01% on Monday.
As of Wednesday (30/09/2026) at 06:27 WIB, gold prices had weakened slightly by 0.014% to US$ 4,180.18 per troy ounce.
“Today’s movement is merely a correction from yesterday’s losses. I still believe there are several significant obstacles facing gold,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, to Reuters.
Gold prices plunged nearly 4% on Monday, recording the deepest daily decline since 10 June 2026. Gold also touched its lowest level since 5 August 2026.
The decline was triggered by a strengthening US dollar, rising Treasury bond yields, a surge in energy prices, and inflation concerns that have bolstered expectations of interest rate hikes.
“Increasing expectations for further Fed rate hikes are keeping the dollar strong, while bond yields remain high. I believe the potential for gold price increases today may be somewhat limited, and the market will remain focused on tomorrow’s PCE inflation data and Friday’s employment data,” Grant noted.
The US dollar strengthened, testing its highest levels in recent months, supported by oil price volatility and the rapid rise in Treasury yields recently.
A stronger dollar makes gold, priced in US dollars, more expensive for overseas buyers. Meanwhile, rising Treasury yields increase the opportunity cost of holding gold, which does not yield interest.
On the other hand, rising energy prices could drive inflation and force central banks to maintain interest rates at higher levels to combat price pressures.
Gold is traditionally considered a hedge against inflation. However, its appeal tends to diminish compared to assets that provide yields when interest rates are high.
According to the CME FedWatch Tool, the market currently estimates a 68% probability of a Fed rate hike in October and a 95% probability in December.
Investors are now awaiting several key economic data points, including ADP employment data and PCE inflation data scheduled for release on Wednesday, as well as US non-farm payrolls on Friday.