US Dollar Strengthens, Pushing Down Global Gold Prices by Up to 2 Per Cent
JAKARTA, KOMPAS.com - Global gold prices have weakened over the past week following the strengthening of the US dollar, rising bond yields, and increasing concerns about inflation due to geopolitical tensions in the Middle East.
Quoting Reuters, spot gold prices were observed to have fallen by 2.5 per cent during this week.
On Friday (15 May 2026), local time, gold prices even fell to $4,557.61 per ounce, the lowest level since 4 May 2026, before finally closing down 2 per cent.
The strengthening of the US dollar and US government bond yields reaching almost a one-year high have made gold, which does not provide returns, less attractive to investors.
“There has been selling pressure in the precious metals market due to several factors. The dollar has strengthened quite significantly, and we are also seeing an increase in bond yields, not only in the US but also globally,” said Marex analyst, Edward Meir.
The strengthening of the US dollar also makes gold more expensive for holders of other currencies, thus reducing investor interest in the yellow metal.
This condition is also triggering concerns about global inflation.
Rising inflation usually causes central banks to be more inclined to raise interest rates, which ultimately puts further pressure on gold as an asset without returns.
US President Donald Trump said he was becoming increasingly impatient with Iran.
Based on the CME FedWatch Tool, market participants are now reducing expectations of interest rate cuts this year, and speculation about potential interest rate increases is beginning to emerge.
Not only gold, other precious metals have also come under pressure.
For example, spot silver prices plummeted 7.7 per cent to $77.07 per ounce at the end of trading last week.
In fact, silver fell as much as 9 per cent in one day and recorded its worst daily performance since 3 March 2026.
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