Gold Prices Weaken Amid US-Iran Negotiations, Still Forecast to Rise

JAKARTA - Global gold prices have experienced high volatility in recent times, with sharp movements from a correction phase to renewed strengthening. This precious metal entered bear market territory after correcting more than 20% from its peak at the end of January 2026, but has strengthened again as inflation concerns ease due to falling oil prices. In trading on Tuesday (24/3/2026) local time or Wednesday (25/3/2026), spot gold was recorded up 2.56% to $4,588 per ounce, while April 2026 delivery futures contracts surged more than 4% to $4,597.7 per ounce. US President Donald Trump stated that his country is negotiating with Iran. Trump also signalled that Tehran is interested in reaching a peace agreement, although the Iranian government denied any direct talks. Speaking in the Oval Office, Trump said he decided to delay threats of attacks on Iran’s energy infrastructure due to the ongoing negotiation process. Those comments immediately pressured global oil prices. The global Brent crude benchmark fell around 6% to $98.31 per barrel, while the US West Texas Intermediate (WTI) crude benchmark weakened about 5% to $87.65 per barrel. The US dollar index, which measures the greenback’s strength against a basket of currencies, was down 0.17% in early Asian session trading. Despite the rebound, global gold prices remain about 17% below their late January 2026 peak. Overall, the approximately 21% decline from the record $5,594.82 per ounce places gold technically in bear market territory. Several market players assess this weakness as triggered by a combination of US dollar strengthening and signs of easing geopolitical tensions. The US dollar is said to have strengthened around 3% since the conflict began on 28 February 2026, prompting profit-taking in the precious metals market.