Gold Prices Soar Again, But the Scent of Danger Grows Stronger

Gold and silver prices are beginning to recover but remain under pressure. According to Refinitiv, gold prices closed at US$4,473.59 per troy ounce on Tuesday’s trading (24/3/2026), surging 1.54%. This strengthening is welcome news after gold tumbled for nine consecutive days and plummeted 15%. Gold prices continued to rise today. On Wednesday (25/3/2026) at 06:36 WIB, gold strengthened 0.69% to US$4,504.49 per troy ounce. The rise in gold is supported by the potential easing of tensions in the Middle East. US President Donald Trump stated on Tuesday (24/3/2026) that the United States has made progress in efforts to negotiate an end to the war with Iran, including obtaining key concessions from Tehran. A source also confirmed that Washington has sent a 15-point settlement proposal to Iran. Trump told reporters at the White House that the US is speaking with the right people in Iran to reach an agreement to end hostilities, adding that the Iranian side is very keen to reach a deal. To date, Iran has denied the negotiations. “If the war continues and energy prices keep rising, that is not good news for gold,” said Bart Melek, head of global commodity strategy at TD Securities, to Reuters. “Gold is likely to be under pressure in the second quarter, but I think the outlook for gold will be attractive again by the end of the year,” he added. He hopes central banks like the Federal Reserve (The Fed) will have more room to ease policy, allowing the dollar to weaken and interest rates to fall. Bullion gold, known as a safe-haven asset and hedge against inflation, tends to lose appeal in a high-interest-rate environment because it offers no yield. The Iran war has effectively halted shipments of about one-fifth of global oil and LNG supplies through the Strait of Hormuz, driving up energy prices and sparking inflation concerns. Major central banks have also affirmed their readiness to act if the war triggers broader price surges. “The recent price drop is likely as excessive as the big rise at the start of the year. In a sense, the pendulum has swung from one extreme to the other for gold,” wrote Commerzbank analysts in a note to Reuters.