Gold Shines Bright After Oil 'Extinguished'

Jakarta, CNBC Indonesia - Gold prices rose on Tuesday, supported by a decline in oil prices. According to Refinitiv, the gold price on Tuesday (4/8/2026) closed at US$ 4,076.014 per troy ounce, strengthening by 0.58%. This increase extends the positive trend for gold, which has gained 0.8% over the past two days. On Wednesday (5/8/2026), the gold price weakened by 0.17% to US$ 4,069.19 per troy ounce.

The weakening of oil prices eased inflation concerns and lowered expectations of a US interest rate hike, while the market awaits further clues on the Federal Reserve’s policy direction. Oil prices plunged more than 5% to a three-week low after statements from Qatari and US officials raised hopes for a diplomatic solution to the Iran war, which could smooth the flow of oil shipments through the Strait of Hormuz.

Bart Melek, Head of Global Commodity Strategy at TD Securities, said the decline in oil prices was likely one factor supporting the rise in gold prices. According to him, falling energy prices influence the outlook for lower short-term interest rates. High energy prices typically reinforce expectations that the Fed will keep interest rates higher for longer to combat inflation, which is a negative sentiment for gold as a non-yielding asset.

Earlier on Monday, New York Federal Reserve President John Williams expressed optimism that inflationary pressures would continue to ease gradually. However, he stressed the central bank would not hesitate to raise interest rates if inflation does not decline as expected. Market participants currently see a 57% chance of a rate hike at the Fed’s September meeting, following the central bank’s decision to hold rates at its last meeting, which revealed differing views among officials.

Investors are also awaiting a series of US employment data this week, including the ADP labour report on Wednesday and nonfarm payrolls data on Friday. The US reported on Tuesday that job openings fell by 178,000 to 7.36 million in June 2026, lower than the market expectation of 7.40 million. This data indicates the US labour market is beginning to slow. The largest declines were seen in the healthcare, leisure and hospitality, wholesale trade, and business services sectors. Conversely, job openings increased in the transportation, warehousing, utilities, and federal government sectors.