Gold Prices Surge: Three-Week High, But Don't Get Too Excited Yet
Jakarta, CNBC Indonesia - Gold prices have soared towards their highest level in nearly three weeks as the US dollar weakens. The rise is also supported by falling oil prices following an agreement between Washington and Tehran for a two-week ceasefire in the conflict.
According to Refinitiv, gold prices closed at US$4,716.12 per troy ounce on Wednesday (8 April 2026), up 0.29%. This strengthening extends the positive trend for gold, which has risen 1.5% over the past two days.
Yesterday’s closing price also marked the highest since 19 March 2026, or the last three weeks.
Gold prices have slightly weakened this morning. On Thursday (9 April 2026) at 06:41 WIB, gold was at US$4,706.27 per troy ounce, down 0.2%.
“This ceasefire has calmed the markets and reduced pressure. This could help ease inflationary pressures and open the door for interest rate cuts by the Federal Reserve, which is positive for gold,” said Edward Meir, an analyst at Marex, to Reuters.
“However, the situation is still very fragile. There are many things that still need to be negotiated. This could easily reverse, and the market recovery might only be short-term. We are not fully out of the risks yet,” he added.
The United States and Iran have agreed to a two-week ceasefire mediated by Pakistan. However, while Israel and the US have halted attacks on Iran, Israel has instead escalated a parallel conflict in Lebanon.
Oil prices have fallen below US$100 per barrel following the ceasefire news.
Meanwhile, the US dollar has weakened against a basket of major currencies, making gold priced in dollars cheaper for holders of other currencies.
The dollar index plunged to 99.13 in yesterday’s trading, from 99.8 in the previous session.
Spot gold prices themselves have fallen around 10% since the start of the US-Israel war against Iran on 28 February, as the surge in energy prices raised inflation concerns and led investors to reduce expectations of interest rate cuts.
High interest rates tend to pressure gold, which yields no returns, although the metal is known as a hedge against inflation.
According to the minutes of the Federal Open Market Committee meeting on 17-18 March, more officials believe that rate hikes may be necessary to control inflation, which remains above the 2% target, particularly due to the impact of the Iran war.
US inflation indicators, including Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI), are scheduled for release this weekend.
If inflation rises, interest rates could reverse direction and rise, pressuring gold prices in the future.