Gold Prices Swing Wildly Within Hours, Causing Anxiety

Gold prices plunged before rebounding on Thursday as the US dollar weakened and oil prices fell following reports of a US-Iran ceasefire extension agreement. According to Refinitiv, gold closed at US$4,491.93 per troy ounce on Thursday (28 May 2026), rising 0.78%. However, gold had fallen to US$4,300 during Wednesday’s trading around 5pm WIB before reversing course after the ceasefire news. The previous day’s rise provided relief after a 2.5% decline over two consecutive days. Gold prices rose on Friday (29 May 2026) at 6.31am WIB, up 0.02% to US$4,492.86 per troy ounce. The US and Iran are reported to have reached a memorandum of understanding (MoU) to extend the ceasefire for 60 days, although US President Donald Trump still needs to give final approval. The US dollar index fell 0.2% to 99.02, its lowest level since 5 May 2026. This made dollar-denominated gold cheaper for foreign buyers. Brent crude oil prices also weakened following the report. Meanwhile, data showed the US Personal Consumption Expenditures (PCE) index rose 3.8% year-on-year through April, in line with market expectations. Monthly, the PCE index increased 0.4% in April after a 0.7% surge in March. Independent metals trader Tai Wong said the combination of weaker US inflation data and news of the Strait of Hormuz opening provided ‘breathing room’ for gold prices. ‘Gold had earlier threatened to fall below the 200-day moving average, which many investors consider a key threshold to maintain an uptrend,’ he said, according to Refinitiv. TD Securities global commodities chief Bart Melek said the PCE data opens the door for the Federal Reserve to hold interest rates and avoid further monetary tightening. Previously, the Fed’s 28-29 April meeting minutes revealed an increasing number of officials open to further rate hikes. Gold prices had been under pressure since the US-Israel conflict with Iran erupted in late February due to inflation concerns. Despite being a safe-haven asset, gold tends to be less attractive when interest rates rise as investors shift to higher-yielding assets. News from China also supported gold prices. China’s net gold imports via Hong Kong surged 81.2% in April compared to the previous month.