Gold Prices Weaken Amid US-Iran Drama, US Dollar the Culprit

Jakarta – Gold prices worldwide weakened again in trading on Tuesday, 21 April 2026. This was triggered by the strengthening of the United States dollar (US) amid uncertainties in peace talks between the US and Iran.

Investors are also awaiting developments in the Senate confirmation hearing for Federal Reserve nominee Kevin Warsh, who is seen as potentially influencing the direction of interest rate policy.

Spot gold was recorded down 0.7% to US$4,784.77 per ounce, or approximately Rp81.34 million per ounce (assuming an exchange rate of Rp17,000 per US dollar). Previously, gold prices had hit the lowest level since 13 April in Monday’s trading.

Meanwhile, US gold futures contracts for June delivery also weakened by 0.5% to US$4,803.60 per ounce, equivalent to Rp81.66 million per ounce. The decline in gold prices occurred alongside the strengthening of the US dollar on Tuesday. This condition makes dollar-based commodities, including gold, more expensive for holders of other currencies, thereby pressuring demand.

ActivTrades analyst Ricardo Evangelista said the current weakening of gold reflects market concerns over the unstable geopolitical situation.

“Today’s drop in gold prices reflects concerns that, although oil prices have recently fallen, the situation in the Strait of Hormuz remains uncertain, with the blockade still ongoing,” he said, as quoted from CNBC on Tuesday, 21 April 2026.

He added that this uncertainty keeps inflation worries alive and actually supports the strength of the US dollar. “This uncertainty keeps inflation concerns alive, supporting the US dollar in a dynamic that creates headwinds for gold, which offers no yield,” he continued.

The market is currently focusing on the prospects of ongoing peace talks between the US and Iran, scheduled to take place in Pakistan. The US government has expressed optimism that the negotiations will proceed, while a senior Iranian official stated that Tehran is considering joining.

However, several obstacles still loom, particularly as the two-week ceasefire between the two parties nears its end. On the other hand, Iran’s Foreign Ministry on Tuesday condemned the United States over alleged attacks on the Iranian merchant ship Touska at the end of last weekend. Iran also demanded the immediate release of the vessel.