Gold Prices Attempt Rebound on Thursday, but Bearish Sentiment Remains
Gold prices attempted a modest recovery in Thursday morning trading (June 25, 2026), following a sharp decline in the previous session. However, bearish pressure continues to dominate the market amid a stronger U.S. dollar and expectations of higher interest rates.
As of 07:35 WIB, August 2026 Gold Futures on the Commodity Exchange traded at $4,016.90 per troy ounce, up 0.20% from the previous session's close of $4,008.80 per troy ounce.
The precious metal edged higher after suffering significant losses on Wednesday, when gold prices came under pressure from a strengthening U.S. dollar and growing speculation that the Federal Reserve may maintain a tighter monetary policy stance.
“Gold prices are moving in line with market expectations for higher U.S. interest rates, as Federal Reserve Chair Kevin Warsh’s focus on inflation reinforces expectations that the central bank could adopt a more aggressive approach,” said Darwei Kung, Head of Commodities at DWS Group, as quoted by Bloomberg.
Strong Dollar Continues to Weigh on Gold
Expectations of tighter monetary policy have also boosted the U.S. dollar, creating additional headwinds for gold. Since gold is priced in dollars, a stronger greenback makes the precious metal more expensive for international buyers and reduces its attractiveness as an investment.
Gold Rally Loses Momentum After Record High
Gold has delivered impressive gains over the past three years, with prices more than doubling as central banks, institutional investors, and retail traders increased their exposure to the precious metal.
However, the bullish momentum began to fade in late January after gold reached an all-time high near $5,600 per troy ounce.
Since then, the market has experienced a significant correction. By June, gold prices had fallen more than 20% from their record peak, a decline that is widely considered a key threshold signaling the beginning of a bear market.
Gold Price Outlook
Investors remain focused on upcoming U.S. economic data and Federal Reserve policy signals. While gold is attempting to stabilize after recent losses, stronger dollar performance and persistent expectations of higher interest rates continue to pose downside risks for the precious metal in the near term.