Garut PR- World gold prices are again showing their fangs amidst global uncertainty. After being depressed by more than 1 percent at the start of trading Monday, the precious metal managed to recover and closed slightly higher in line with increasing market concerns about geopolitical conflicts and the direction of US (United States) interest rate policy.
According to a CNBC report, Tuesday (12/5/2026), the spot gold price rose 0.1 percent to USD 4,717.38 per ounce. Meanwhile, the US gold futures contract moved stable at USD 4,727.80 per ounce.
Gold price movements throughout the trading session were volatile. Investors appear to be taking advantage of the previous price weakness to buy cheaply or bargain hunt, while preparing to face the release of US inflation data which is expected to determine the next market direction.
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Market analyst from the American Gold Exchange, Jim Wyckoff, assesses that market players are starting to reorganize their investment positions ahead of the publication of important economic data from Uncle Sam’s country.
According to him, investors are now waiting for US Consumer Price Index (CPI) data which is scheduled to be released on Tuesday local time, followed by Producer Price Index (PPI) data on Wednesday. These two indicators are considered to provide an idea of how much inflationary pressure is still hanging over the US economy.
Apart from economic factors, the gold market also received a boost from the heating up of geopolitical tensions between the US and Iran. The conflict situation which has been going on for 10 weeks has sparked new concerns in the global market, especially regarding the threat of disruption to world oil distribution.
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US President Donald Trump is said to have rejected Iran’s response to Washington’s peace proposal. In fact, Trump said the possibility of a ceasefire was now in a “life support” condition or on the verge of failure.
This tension has made investors worried about the potential disruption to shipping activities in the Strait of Hormuz, a strategic route that is the lifeblood of world oil distribution. This concern also triggered an increase in global crude oil prices.
RJO Futures Senior Market Strategist, Daniel Pavilonis, said market attention is now focused on the possibility of reopening shipping lanes in the Strait of Hormuz as well as the continued impact of the spike in energy prices on the global economy.
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On the other hand, market expectations regarding a US interest rate cut are starting to change. A number of global brokers now predict that the US central bank or The Fed will be more careful in loosening its monetary policy.
Some analysts even think that the chances of cutting interest rates in 2026 are getting smaller because inflation is still quite high and central bank officials are likely to maintain tight policy for longer.
High interest rate conditions are usually a challenge for gold. As a safe haven asset, gold is often sought after when uncertainty increases, but this precious metal does not offer interest yields so its attractiveness can decrease when interest rates rise.
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Not only that, investors’ attention is also focused on Donald Trump’s two-day visit to China this week. During the visit, Trump is scheduled to meet Chinese President Xi Jinping to discuss a number of strategic issues, ranging from the Iran conflict, Taiwan, artificial intelligence, to the issue of nuclear weapons.
The meeting of the two leaders of the world’s largest economies is expected to be an important factor that could influence the direction of global markets, including gold price movements in the next few days.***
