Gotrade News - Spot gold tumbled 2.06% to $4,720.68 per troy ounce on Tuesday (April 21), hitting its lowest level in nearly two weeks. A strengthening US dollar and rising Treasury yields were the primary drivers behind the precious metal's decline.
Key Takeaways:
- Spot gold fell to $4,720 per troy ounce, the lowest since April 8, 2026
- The US dollar gained 0.2% against major currencies, making gold more expensive for non-dollar holders
- Rising oil prices fuel inflation concerns that could keep interest rates elevated longer
The US dollar strengthened 0.2% against major currencies in the same session. This appreciation made dollar-denominated gold more expensive for holders of other currencies.
US 10-year Treasury yields also rose, reducing gold's appeal as a non-yielding asset. The combination of both factors drove gold prices lower for the second consecutive session.
In Wednesday (April 22) trading, spot gold was at $4,777.77 per ounce at 12:53 GMT. MarketPulse analysts projected a trading range between $4,750 and $4,850.
Uncertainty surrounding US-Iran peace negotiations also weighed on commodity market sentiment. President Trump stated he would refrain from attacking Iran as long as Tehran submits a new peace proposal.
However, the Strait of Hormuz remained closed as Iran maintained its blockade until the US lifts naval restrictions. The US seizure of an Iranian cargo vessel further escalated tensions and added commodity market volatility.
Oil price gains of approximately 5% due to supply disruptions fueled inflation concerns. The prospect of interest rates remaining elevated longer represents an additional headwind for gold prices.
Investors await developments in US-Iran negotiations in Pakistan and Fed Chair nominee Kevin Warsh's confirmation hearing. Both events could influence the dollar's direction and Treasury yields in the near term.
Sources: IDX Channel, Bloomberg Technoz, Liputan6
