Gold Prices Slide

Gold Falls Below $4,200/Oz as Iran Tensions Fuel Inflation Concerns

Gold prices extended losses for a fourth consecutive session on Wednesday, pressured by a stronger US dollar and rising expectations of another Federal Reserve interest rate hike, as renewed US attacks on Iran intensified concerns over energy-driven inflation.

Spot gold declined 1.9% to $4,180.85 per ounce at 09:06 WIB, touching its lowest level since March 23.

Meanwhile, US gold futures also slipped 1.9% to $4,204.75 as investors reduced exposure ahead of the highly anticipated US Consumer Price Index (CPI) report scheduled for release on Wednesday.

Washington launched fresh strikes against Iranian targets on Tuesday following the crash of a US military helicopter near the Strait of Hormuz, reigniting fears of broader disruptions to global energy supplies.

Oil prices climbed around 1% on Wednesday, adding to concerns that higher fuel costs could accelerate inflation and complicate the Federal Reserve’s policy outlook.

Persistent inflation expectations have prompted investors to scale back forecasts for US rate cuts. More than 70% of market participants are now pricing in the possibility of a Fed rate hike by December.

Higher interest rates typically weigh on non-yielding assets such as gold by increasing the opportunity cost of holding precious metals.

US Treasury yields remained near multi-month highs, while the US dollar stayed firm ahead of the inflation report. The US Dollar Index (DXY) edged up 0.1% during the Asian trading session, hovering near a two-month high reached earlier this week.

XAU/USD Outlook

Investors are closely watching the upcoming CPI data for further signs of strengthening inflationary pressures. Economists expect annual consumer inflation to rise to around 4.2% in May, marking the highest reading since April 2023 and potentially reinforcing expectations that the Federal Reserve will maintain a hawkish monetary policy stance.

Markets are also awaiting the Federal Reserve policy meeting on June 16–17, where policymakers are widely expected to keep interest rates unchanged, although officials could still signal a more aggressive outlook if inflation remains elevated. 

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Gold Awaits Inflation

 

Gold Holds Near 11-Week Low as Iran-Israel Ceasefire Eases Tensions; US CPI Data in Focus

Gold prices were little changed during Asian trading on Tuesday, hovering near an 11-week low as easing hostilities between Iran and Israel reduced inflation concerns, while investors awaited key U.S. Consumer Price Index (CPI) data later this week for further clues on the Federal Reserve’s interest rate outlook.

Spot gold edged up 0.2% to $4,336.90 per ounce as of 08:41 WIB, while U.S. gold futures for August remained flat at $4,361.82 per ounce.

In the previous session, the precious metal dropped to its lowest level since March 23 before trimming losses and ending the day nearly unchanged.

Gold bullion came under pressure after stronger-than-expected U.S. labor market data released last week reinforced expectations that the Federal Reserve may keep interest rates higher for longer.

Market sentiment improved after Iran and Israel agreed to halt attacks following renewed tensions over the weekend.

U.S. President Donald Trump said on Monday evening that the United States was close to declaring a “total victory” in the Iran conflict and suggested oil prices could decline sharply.

Oil prices slipped on Tuesday after surging in the previous session amid renewed hostilities, although traders remained cautious about the durability of the ceasefire agreement.

Although gold is traditionally viewed as a safe-haven asset, the metal struggled for most of the Gulf conflict period. The war’s impact on crude oil markets created unusual market dynamics for bullion prices.

XAU/USD Outlook

Higher oil prices have fueled concerns that energy-driven inflation may remain elevated, prompting investors to scale back expectations for Federal Reserve rate cuts and, in some cases, price in the possibility of further policy tightening. This has pushed U.S. Treasury yields and the U.S. dollar higher, reducing the appeal of non-yielding assets such as gold.

Investor attention is now turning to upcoming U.S. inflation data, with CPI figures scheduled for Wednesday and Producer Price Index (PPI) data due on Thursday. The reports could help determine whether the recent surge in oil prices is feeding into broader inflationary pressures.

A hotter-than-expected inflation reading could strengthen expectations for prolonged higher interest rates, potentially putting additional pressure on gold prices.

Current market pricing has shifted significantly following the strong U.S. payrolls report, with investors now factoring in at least one Federal Reserve rate hike this year.

Among other precious metals, silver prices rose 0.1% to $68.24 per ounce, while platinum remained unchanged at $1,760.60 per ounce.

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EMAS Expands Resources

 

EMAS Adds Kolokoa Maiden Resource, Pani Gold Inventory Rises to 7.4 Million Ounces

PT Merdeka Gold Resources Tbk (EMAS) has announced its maiden Mineral Resource Estimate (MRE) for the Kolokoa Prospect, strengthening the company’s long-term gold production outlook.

The Kolokoa Prospect is located approximately 500 meters from the Pani Gold Mine area in Pohuwato Regency, Gorontalo. The new discovery adds significant gold resources to EMAS’ growing mineral inventory.

Based on the estimate as of June 1, 2026, Kolokoa contains mineral resources of 42 million tons with an average grade of 0.33 grams of gold per ton, equivalent to around 445,000 ounces of gold.

The latest estimate increases the total mineral resource inventory of the Pani Gold Mine to approximately 7.4 million ounces of gold, up from the previous 7 million ounces. The addition represents an increase of roughly 6%.

President Director of Merdeka Gold Resources, Boyke Poerbaya Abidin, said the company completed the maiden mineral resource estimate for Kolokoa within a relatively short timeframe.

“Within six months, we successfully established a maiden mineral resource containing 445,000 ounces of gold,” Boyke said in an official statement on Monday (June 8, 2026).

According to Boyke, the result supports the company’s long-term production growth strategy, including plans to increase peak production capacity.

“This achievement supports EMAS’ long-term production growth strategy, including plans to increase peak production to 500,000 ounces per year,” he stated.

The Kolokoa resource estimation program was carried out from November 2025 to April 2026. The program included 54 drill holes totaling 11,701.6 meters.

Initial metallurgical testing using the bottle-roll method showed high gold recovery rates for oxide material, ranging from 87% to 94%.

Meanwhile, transition material recorded recovery rates between 81% and 92%. Boyke noted that these results support Kolokoa’s compatibility with the current Pani Gold Mine operations.

EMAS management believes the Kolokoa mineral resource still has strong expansion potential. Gold mineralization remains open toward the north, south, and deeper layers.

In addition, the company plans to use the Kolokoa geological and resource model to support further drilling activities, metallurgical studies, and future mine planning.

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