Gold Prices Slump, Traders and Investors Still Await This Key Signal

Jakarta, CNBC Indonesia - Gold prices have flattened as investors worry about rising inflation and tight market liquidity. As a non-yielding asset, gold tends to be less attractive when interest rates are high.

According to Refinitiv, gold prices closed at US$4,787.78 per troy ounce on Thursday’s trading (16/4/2026). The price flattened by 0.05%. This weakness extends gold’s suffering, weakening 1.09% over the last two days.

Gold prices strengthened slightly today. On Friday (17/4/2026) at 06:22 WIB, gold was priced at US$4,792.27 per troy ounce.

Hopes that the US and Iran will reach a long-term peace agreement and end the war are helping gold prices rebound. The two countries are expected to continue peace negotiations after previous talks failed last weekend.

US President Donald Trump stated in a social media post that a ceasefire would begin at 17:00 EST (21:00 GMT), aiming to halt the conflict between Israel and the pro-Iran Lebanese group Hezbollah, which has heated up again due to the US-Israel war against Iran.

“If we see a easing of US-Iran tensions or the end of the war, then the chances of Federal Reserve rate cuts will be greater going forward… and that could support the precious metals complex,” said David Meger, Director of Metal Trading at High Ridge Futures, to Reuters.

Currently, market participants estimate a 32% chance that the US will cut interest rates this year.

Meanwhile, new US unemployment claims fell last week, indicating that the labour market remains stable, although companies remain cautious about hiring new workers due to the shadow of war with Iran over the economy.