Mayday! Mayday! Gold Price Plummets 4%, Falls to $4,000 Level

Jakarta, CNBC Indonesia - Gold prices slumped more than 4% amid growing fears that the United States-backed war against Iran will expand.

This condition is triggering concerns about interest rate hikes to curb rising inflation, while investors await US economic data for clues on the direction of monetary policy.

Citing Refinitiv, gold prices in trading on Wednesday (10/6/2026) closed at US$ 4,073.46 per troy ounce. The price fell 4.43%. This is the lowest since November 2025, or a seven-month low.

Gold prices have now collapsed for four consecutive days, weakening by 8.95%.

Gold was still falling today. On Thursday (11/6/2026) at 06:29 WIB, the price was at US$ 4,059.64 per troy ounce, down 0.33%.

“The market is desperate for good news after strong US employment data last Friday and President Donald Trump’s threat this morning that Iran will ‘pay the price’ for not wanting to reach a deal,” Tai Wong, an independent metals trader, told Reuters.

Trump said on Wednesday that Iran had negotiated for too long and must now pay the price. He subsequently stressed that the US would attack Iran very hard if a peace deal is not reached.

Iran then launched missile and drone strikes at US military bases in Jordan, Kuwait, and Bahrain in retaliation for American strikes on Iranian targets around the Strait of Hormuz.

United States forces began launching additional strikes against various targets in Iran at 17:15 EDT (21:15 GMT), according to a statement from United States Central Command posted on platform X on Wednesday.

“These strikes are a response to Iran’s unprovoked and ongoing aggression,” the US military said.

According to a number of US media reports, the strikes targeted critical Iranian facilities, including ammunition depots, command and control centres, and military logistics facilities.

This move marks the latest escalation in tensions between Washington and Tehran following the incident where a US Army Apache helicopter crashed near the Strait of Hormuz.

Gold prices have been under pressure since the war broke out in late February, as surging oil prices have sparked inflation and interest rate hike fears.

Although gold is known as a hedge against inflation, rising interest rates typically dampen the appeal of the precious metal because it offers no yield.

Currently, market participants are pricing in a roughly 67% chance that the US central bank, the Federal Reserve, will raise interest rates next December, based on the CME Group’s FedWatch Tool.

The US Department of Labour reported that core inflation, which excludes the energy and food sectors, appeared more moderate with a monthly increase of 0.2% and an annual increase of 2.9%.

Responding to yesterday’s inflation data, market participants are projecting that the Fed will hold its benchmark interest rate at the upcoming 17 June meeting, with the potential for a rate hike now predicted to be pushed back until December.

Investors are now awaiting the release of the US Producer Price Index (PPI) on Thursday to gain a clearer picture of the Fed’s monetary policy direction.

“Although gold prices are consolidating, inflation, central bank purchases, and currency debasement concerns remain supportive factors for gold,” said Paul Wong, market strategy analyst at Sprott Asset Management.