Gold Prices Slip Tuesday Morning as Fed Signals Controlled US Inflation
Gold prices edged lower in early Tuesday trading (March 31, 2026), reflecting cautious market sentiment after the Federal Reserve signaled that long-term inflation expectations in the United States remain under control.
As of 07:00 WIB, gold futures for June 2026 delivery on the Commodity Exchange were recorded at $4,544.40 per troy ounce, marking a 0.29% decline from the previous session’s close of $4,557.50 per troy ounce.
The slight correction in gold prices comes after the Federal Reserve indicated confidence in its current monetary policy stance. According to Bloomberg, Fed Chair Jerome Powell stated that the central bank is in a “good position” to adopt a wait-and-see approach, despite rising oil prices that continue to fuel inflation concerns and speculation over potential interest rate hikes.
Geopolitical tensions in the Middle East remain elevated, particularly following the Iran conflict that escalated a month ago. During that period, many investors took advantage of lower gold prices to re-enter the market, supporting demand for the precious metal.
However, rising energy costs could drive inflation higher, prompting central banks to tighten monetary policy further. This scenario may weigh on gold prices, as higher interest rates tend to reduce the appeal of non-yielding assets like gold.