Gold Prices Surge 1% but Significant Risks Loom Ahead
Gold prices surged more than 1% during Wednesday’s trading, yet the precious metal is projected to face numerous challenges today.
According to Refinitiv, gold prices closed at US$4,400.49 per troy ounce, marking a 1.06% increase on Wednesday. This rise broke a negative trend where gold had slumped for three consecutive days by 2.7%.
Gold prices began to level off today. As of Thursday (10/09/2026) at 06:47 WIB, gold prices had dipped 0.16% to US$4,393.28 per troy ounce.
“The gold market received slight support because the US dollar has recently been under pressure,” said David Meger, Director of Metals Trading at High Ridge Futures, to Reuters.
The US dollar remained near its two-week low. This condition makes gold, priced in dollars, cheaper for holders of other currencies. Investors are also monitoring oil prices, which have breached US$100 per barrel amidst the expanding conflict in the Middle East.
However, the US dollar has begun to climb again today. This situation could put pressure on gold, as seen this morning.
The US dollar index, which had weakened to 98.78 in yesterday’s trading, has moved up to 98.82. This implies that gold prices are becoming more expensive for holders of other currencies.
A surge in US Treasury yields could also weigh on gold, as the metal offers no yield. If the US dollar and US Treasury yields continue to rise, gold will become increasingly unattractive.
“The recent surge in oil prices is providing an inflationary boost. However, the cause—namely rising transport costs and supply chain disruptions—is driving up bond yields because monetary policy is now more focused on controlling inflation than before,” said Rhona O’Connell, Head of Market Analysis at StoneX.
Investors are now awaiting the US Producer Price Index (PPI) data on Thursday and consumer inflation data on Friday. Both sets of data will serve as indicators for the market regarding the Federal Reserve’s next steps in responding to price pressures.
Based on the CME FedWatch Tool, the market currently estimates approximately a 60% probability of an interest rate hike at the Federal Reserve’s policy meeting next week.