Gold Price Correction Continues After Recent Rally

Market Dynamics Shift

Gold prices have entered a correction phase following a recent rally, with the precious metal facing downward pressure from two major factors: the strengthening US dollar and shifting expectations regarding Federal Reserve monetary policy. On Tuesday, November 18, 2025, at 17:17 WIB, gold prices dropped to US$ 4,040.39 per troy ounce, representing a 0.15% daily decline.

Recent Performance Analysis

The weekly and monthly performances show more significant corrections of 2.63% and 7.79% respectively. The recent peak was reached on Thursday, November 13, 2025, at 20:15 WIB when gold prices touched US$ 4,237.6 per troy ounce. This peak was followed by a consistent downward trend that has continued through the latest trading sessions.

Market Factors Influencing Price Movement

1. US Dollar Strength: The strengthening US dollar has been a primary factor contributing to the decline in gold prices. A stronger dollar makes dollar-denominated commodities like gold more expensive for holders of other currencies.
2. Fed Policy Expectations: The hawkish sentiment from the Federal Reserve has reduced market expectations for potential rate cuts, making investors less inclined to hold non-yielding assets like gold.

Market Outlook

The current correction in gold prices reflects changing market dynamics and investor sentiment. While the recent rally showed strong demand, current factors are creating headwinds for further gains. Investors are closely watching both dollar movements and Fed policy guidance for future direction.