Global Gold Prices Rise 1 Percent This Week, Here’s Why

NEW YORK, KOMPAS.com - Global gold prices rose about 1 percent over the past week, marking their first weekly increase in four weeks, amid falling oil prices that eased inflation concerns.

By the close of trading on Friday (September 18, 2026), spot gold prices increased 1.2 percent to 4,390.11 U.S. dollars per troy ounce. During the session, gold briefly touched its highest level since September 11.

Meanwhile, U.S. gold futures settled up 0.6 percent at 4,424.90 U.S. dollars per troy ounce.

"The drop in oil prices reduces inflationary pressures since oil has been a major driver of overall inflation," said Chris Gaffney, President of World Markets at EverBank, as quoted by Reuters on Sunday (September 20, 2026).

Brent crude oil prices extended their decline for a third consecutive day as concerns over supply disruptions from Saudi Arabia eased.

This development offset worries about the expanding conflict in the Middle East.

The falling oil prices provided some relief from inflation fears.

However, the risk of supply shocks from the Middle East remains a primary concern.

On another front, the U.S. dollar strengthened to its highest level in over seven weeks.

This made gold more expensive for holders of other currencies, reducing investor appetite for the yellow metal.

The U.S. central bank, the Federal Reserve (The Fed), raised interest rates by 25 basis points to a range of 3.75 percent to 4 percent on Wednesday.

The Fed also indicated the possibility of further rate hikes in the coming months.

Market participants see a 55 percent chance of a rate hike at the October U.S. meeting, according to the CME FedWatch Tool.

Gold is generally seen as an inflation hedge, although it does not provide yield.

However, higher interest rates can reduce gold's appeal by making yield-bearing assets more attractive.

Elsewhere, the Bank of Japan also raised interest rates to a 31-year high and signaled readiness to continue increasing borrowing costs.

Meanwhile, gold demand in India was sluggish this week as buyers held back purchases, anticipating price drops.

In China, gold premiums remained stable, supported by strong investment demand.

Gaffney said gold prices are currently testing resistance levels around 4,400 to 4,440 U.S. dollars per troy ounce.

"If prices break through this resistance level, it could pave the way for further gains in gold prices," he added.