Sorry! No Good News Yet, Gold Prices Continue to Struggle
Jakarta, CNBC Indonesia - Gold and silver prices are expected to remain highly sensitive to developments in the Middle East, crude oil price movements, and a series of important economic data sets to be released this week. Market participants will closely monitor trade and inflation data from China and the United States, US consumer sentiment data, and India’s Consumer Price Index (CPI) for clues regarding the direction of precious metals.
The monetary policy decision by the European Central Bank (ECB) will also be a focal point for investors, as it has the potential to influence the prices of gold and other commodities. According to Refinitiv, gold prices as of Monday (8/6/2026) at 06:13 WIB stood at US$ 2,325.41 per troy ounce, representing a slight decline of 0.08%.
This weakness extends gold’s recent period of volatility. In the final trading session of last week, Friday (5/6/2026), gold closed at US$ 2,328.80, after a significant drop of 3.24%. This daily decline of 3.4% marks the deepest drop since 20 March 2026 (3.45%), bringing gold to its lowest level since 31 December 2025, or its lowest point so far this year.
“The momentum for precious metals such as gold and silver still appears to be in a correction phase,” said Pranav Mer, Vice President of EBG Commodity & Currency Research at JM Financial Services Ltd, as quoted by The Business Times India. Jateen Trivedi, VP Research Analyst for Commodity and Currency at LKP Securities, added, “Gold recorded weak performance last week because the rise in crude oil prices diverted investor attention away from safe-haven assets.”
The collapse in gold prices was partly triggered by a surge in the US dollar. The US dollar index currently stands at 100.14, its highest level since late March 2026. As global gold purchases are converted into US dollars, the strengthening dollar reduces demand, a condition that significantly impacts major consumers such as India.
“Stronger-than-expected US PMI data and labour market figures have reinforced expectations that interest rates will remain high for longer. Simultaneously, the strengthening US dollar and capital outflows from ETFs are weighing on gold prices,” Trivedi noted.
Looking ahead, Trivedi predicts that gold and silver could remain under pressure, trading within the range of US$ 2,400–2,500 per troy ounce. However, the UK-based firm Metals Focus, in its ‘Gold Focus 2026’ report, acknowledged that while gold prices have faced pressure from changing interest rate expectations and conflicts involving Iran, these hurdles are likely temporary.
“Despite these various pressures, we believe that once the impact of the Iran conflict subsides, gold will resume its bullish trend,” the report stated. According to Metals Focus, the primary factors supporting gold price increases last year are likely to persist throughout 2026 and beyond. This outlook suggests that investors still view gold as a hedge against inflation, geopolitical instability, and long-term economic growth concerns.