May Day! Gold Prices Plunge 2%, Silver Falls 3% This Morning

Jakarta, CNBC Indonesia - Gold and silver prices are expected to be volatile this week following the collapse of the ceasefire agreement between Iran and the United States (US). Investors are also monitoring domestic inflation, economic data from China to the US, and speeches by several Federal Reserve officials to be released this week. In Friday’s trading last week (10/4/2026), gold closed at US$4,747.49 per troy ounce, down 0.34%. Nevertheless, overall, gold prices rose 1.54% last week. Gold prices immediately plunged today alongside the renewed surge in the US dollar due to political tensions in the Middle East. On Monday (13/4/2026) at 06.29 WIB, gold prices fell 2.01% to US$4,651.94 per troy ounce. The dollar index surged to 99.13 on Monday morning after being at 98 for two days. Gold purchases are converted in US dollars, so a rising dollar will pressure demand. Global geopolitical tensions have peaked again. The US military has stated that a blockade of Iranian ports will begin on Monday at 10.00 ET or 14.00 GMT or Monday at 21.00 WIB (Western Indonesia Time). This move has the potential to shake the global energy market as it occurs amid uncertainty over the fate of the Strait of Hormuz, a vital global oil distribution route. US Central Command (CENTCOM) emphasised that it will not obstruct ships transiting the Strait of Hormuz to or from non-Iranian ports. This means the restrictions are focused on maritime activities directly related to Iran. The statement came shortly after President Donald Trump announced via Truth Social that the US Navy would “blockade every ship” attempting to enter or exit the Strait of Hormuz. Trump described the tough action as being taken after negotiations with Iran in Pakistan failed. According to Trump, Tehran refused to “abandon its nuclear ambitions.” However, Iran’s version differs. The Iranian government claims that both sides were actually “one step away” from reaching an agreement, but the negotiations collapsed because the US made maximalist demands and constantly changing conditions. Iran’s parliamentary speaker Mohammad Bagher Ghalibaf, who led the negotiations in Pakistan, emphasised that his country will not bow to any threats. That strong statement underscores that the chances of compromise in the near future remain slim. What is the Outlook for Gold? As long as prices remain between US$4,400 below and US$5,000 above, the market tends to move sideways within a certain range. Given the volatility, gold still offers attractive opportunities, but it is more suitable for trading from one level to another, rather than holding positions in hopes of a long-term trend. From a technical perspective, gold prices are still struggling to break through the US$4,800-US$4,850 resistance zone. This area is very important because it consists of former support that has turned into resistance. As long as that level has not been breached, it is difficult to see an increase occurring.