Gold Prices Slide for Two Consecutive Days, US Inflation the Culprit!
Jakarta, CNBC Indonesia - Global gold prices remain under pressure amid growing inflation concerns stemming from the Iran war. This situation is dimming hopes for US interest rate cuts and reducing the appeal of the precious metal.
According to Refinitiv, gold prices closed at US$4,687.44 per troy ounce on Wednesday (13/5/2026) trading, down 0.56%. This weakening extends the negative trend for gold to two consecutive days, following a 0.43% decline on Tuesday (12/5/2026).
Nevertheless, gold prices edged up slightly this morning. On Thursday (14/5/2026) at 06.15 WIB, gold stood at US$4,701.54 per troy ounce, up 0.30%.
The pressure on gold comes after US producer inflation data rose higher than expected in April. This increase marks the largest since early 2022 and serves as the latest signal that inflation is rebounding amid the Iran war.
Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, stated that persistent high inflation strengthens expectations that US interest rates will remain elevated for longer.
“Inflation remains sticky, so expectations of higher interest rates for a longer period are strengthening, and that’s what’s pressuring gold over the past two days,” Grant said, quoted from Reuters.
Gold is often viewed as a hedge against inflation. However, higher interest rates typically weigh on the precious metal because gold yields no returns.
The latest US economic data shows that US consumer inflation rose again in April. On an annual basis, US inflation climbed to 3.8%, the largest increase in the past three years or since May 2023.
This situation has led market participants to largely scrap expectations for US interest rate cuts this year, according to CME Group’s FedWatch.
Beyond inflation and interest rates, the market is also monitoring Trump’s visit to China. Trump arrived in China with an agenda to push several deals, maintain the fragile trade truce with the world’s second-largest economy, and bolster his sagging public approval ratings amid the war with Iran.
The Trump-Xi Jinping meeting is a key focus as it could influence global risk sentiment.
If the talks yield positive developments, demand for safe-haven assets like gold could be subdued. Conversely, if trade tensions or geopolitical conflicts escalate again, gold could still find support.
Additional pressure on gold is coming from India. The Indian government has raised import duties on gold and silver to 15% from the previous 6%. This policy is part of efforts to curb purchases of precious metals from abroad and ease pressure on India’s foreign exchange reserves.
India is the world’s second-largest consumer of precious metals. Therefore, the duty hike could dampen gold demand.