.jpg)
Gold Prices Correct Despite Ongoing Geopolitical Tensions
Precious metals, including gold and silver, declined over the past week even as global geopolitical tensions remained elevated.
According to Bloomberg data on Thursday (March 19, 2026), at 12:00 WIB, spot gold prices stood at US$4,818.50 per troy ounce, marking a 4.5% weekly decline. Meanwhile, silver prices dropped to US$75.62 per ounce, down 11.15% over the same period.
Lukman Leong, Chief Analyst at Doo Financial Futures, explained that the recent weakness in gold prices is primarily driven by a stronger US dollar. This trend aligns with reduced expectations of interest rate cuts by the US Federal Reserve (The Fed).
During the same period, the US Dollar Index (DXY) rose to 100.1, gaining 0.36% השבוע-over-week, highlighting the dollar’s dominance over safe-haven demand.
“The strengthening US dollar, fueled by declining expectations of Fed rate cuts, is currently the dominant factor outweighing risk-off sentiment,” Lukman stated.
In addition, gold’s strong rally earlier this year has prompted investors to take profits. Many market participants are now waiting for a better entry point before re-entering the market.
Despite the recent pullback, Lukman emphasized that the gold rally is not over. From a long-term fundamental perspective, gold remains supported by continued demand from global central banks.
He noted that the current decline is largely influenced by short- to medium-term factors. Moving forward, gold prices will heavily depend on geopolitical developments, particularly the duration of ongoing conflicts and movements in global oil prices.
“Gold is likely to resume its rally, depending on how quickly geopolitical conflicts ease and how oil prices evolve,” he added.
Silver, on the other hand, shows slightly different characteristics. Besides being a safe-haven asset, silver is also widely used as an industrial metal, particularly in the renewable energy sector.
Lukman pointed out that silver’s strong rally in late 2025 was driven by supply concerns amid rising demand from the green energy industry. However, like gold, silver prices are currently under pressure due to the stronger US dollar and shifting expectations around Fed interest rates.
“Silver tends to be more volatile,” he noted.
Looking ahead, Lukman projects gold prices to trade in the range of US$5,300–US$5,500 per troy ounce in the first half of 2026. Meanwhile, silver is expected to move between US$95 and US$100 per ounce during the same period.