The Fed Holds Interest Rates, Global Gold Prices Plunge to Lowest Level in Over a Month

NEW YORK, KOMPAS.com - Global gold prices weakened at the end of trading on Wednesday (18/3/2026) local time, or Thursday (19/3/2026) morning WIB, after the United States Federal Reserve (The Fed) decided to hold interest rates. Citing Reuters, spot gold prices in the market fell 2.9 percent to $4,860.21 per ounce, after touching the lowest level since 6 February 2026 in the previous session. Meanwhile, US gold futures contracts for April delivery closed down 2.2 percent at $4,896.20 per ounce. However, the central bank has not provided strong signals on when it will begin cutting interest rates, although economic projections indicate the possibility of one cut this year. Fed Chair Jerome Powell stated that the central bank’s latest projections remain clouded by uncertainty due to the Iran war. “Powell clearly signalled that The Fed is in a wait-and-see position, and the soft dovish hints are not enough to lift assets or gold, which has traded like a risky asset. If the market hoped The Fed was ready to ‘help’, they did not get it,” said independent metals analyst Tai Wong. He added that the drop in gold below $5,000 per ounce could be technically concerning, but it will not change the long-term bullish trend.