Gold Weekly Loss

Gold Prices Head for Weekly Loss as US-Iran Tensions Weigh on Market Sentiment

Gold prices remained largely unchanged on Friday but were on track to post a weekly loss as escalating military tensions between the United States and Iran fueled concerns over rising inflation and higher interest rates.

Meanwhile, silver and platinum were also expected to end the week lower, pressured by surging oil prices and a stronger U.S. dollar, which recovered from last week's losses.

Spot gold was little changed at $4,125.03 per ounce, while gold futures slipped 0.1% to $4,135.67 per ounce as of 09:11 GMT. The precious metal has fallen approximately 1.6% this week, reflecting cautious investor sentiment.

Gold markets have been shaken by a series of U.S. military strikes on Iran, which triggered a sharp rally in global crude oil prices. Rising geopolitical tensions have heightened concerns that energy-driven inflation could remain elevated, complicating the outlook for global monetary policy.

U.S. President Donald Trump announced that the ceasefire with Iran had ended and ordered additional military operations against the country, prompting retaliatory action from Tehran. Although an Axios report indicated that regional mediators are attempting to preserve a recently negotiated U.S.-Iran memorandum of understanding, prospects for lasting peace in the Middle East remain highly uncertain.

The surge in oil prices has intensified fears of higher inflation, increasing expectations that the Federal Reserve may maintain a more hawkish policy stance. According to the CME FedWatch Tool, markets have continued to price in greater odds of Federal Reserve interest rate hikes in 2026.

Higher interest rates typically weigh on non-yielding assets such as gold because they increase the opportunity cost of holding bullion compared with interest-bearing investments.

Other precious metals also posted weekly declines despite modest gains on Friday. Spot silver rose 0.5% to $60.2550 per ounce but remained down 4.1% for the week. Spot platinum climbed 1.2% to $1,636.14 per ounce, although it was still down 0.4% on a weekly basis.

Investors are expected to remain focused on developments in the Middle East, movements in oil prices, and upcoming U.S. economic data, all of which could influence the Federal Reserve's policy outlook and the near-term direction of gold prices.

Share:

Read More

Gold Rebounds Higher

 

Gold Rebounds Toward $4,100 but Struggles to Gain Momentum Amid Inflation Concerns

Gold prices rebounded toward the $4,100 level on Thursday, snapping a three-day losing streak. However, the recovery remained limited as renewed geopolitical tensions in the Middle East reignited global inflation concerns, reducing expectations for aggressive monetary policy easing by major central banks.

The XAU/USD pair traded around $4,056, maintaining a bearish short-term outlook as spot gold remained below the 20-day Exponential Moving Average (EMA) at $4,149.09. Trading beneath this key technical indicator suggests that bullish momentum remains weak despite the latest rebound.

Meanwhile, the Relative Strength Index (RSI) stood at 40.11, remaining in mildly negative territory. Although the indicator does not point to oversold conditions, it continues to signal persistent selling pressure in the gold market.

On the upside, immediate resistance is located at the 20-day EMA of $4,149.09. A sustained breakout above this level would be needed to ease the current bearish sentiment and could open the door for a move toward the $4,200 resistance area.

On the downside, if gold falls below the June 30 low of $3,941.76, the precious metal could extend its decline toward the $3,800 support zone.

Fed Rate Expectations Shift as Inflation Risks Rise

Market participants have increasingly priced in the possibility of persistent inflation, according to the CME FedWatch Tool. The probability that the Federal Reserve will leave interest rates unchanged this year declined to 14.9%, down from 19.4% recorded on Tuesday, reflecting growing expectations that policymakers may need to maintain a hawkish stance.

Geopolitical tensions also continued to influence investor sentiment. On Wednesday, the US Central Command confirmed it had launched fresh military strikes against Iran aimed at keeping the Strait of Hormuz—a critical shipping route for nearly 20% of global energy supplies—open for international transit.

The renewed military action followed US President Donald Trump's announcement that the memorandum of understanding (MoU) signed with Iran to end the Middle East conflict was no longer in effect, further escalating uncertainty across global financial markets.

Looking ahead, investors will closely monitor upcoming US economic data for fresh evidence on inflation trends and their potential impact on the Federal Reserve's monetary policy outlook.

Minutes from the Federal Open Market Committee (FOMC) June policy meeting, released on Wednesday, revealed that policymakers continue to view inflation as the primary economic risk. Several Fed officials also indicated that additional monetary tightening could still become necessary if inflation remains persistently above the central bank's long-term target.

Share:

Read More

Gold Prices Stabilize

Gold Prices Hold Steady Amid Iran Tensions as Markets Await Fed Minutes

Gold prices traded little changed during the Asian session on Wednesday as investors assessed the latest escalation in tensions between the United States and Iran while turning their attention to the release of the Federal Reserve's June meeting minutes for fresh clues on the future path of interest rates.

Bullion remained stable after suffering a sharp decline in the previous session. Rising geopolitical tensions in the Middle East pushed crude oil prices higher, reigniting concerns that elevated energy costs could keep inflation stubbornly high.

Spot gold gained 0.3% to $4,117.82 per ounce as of 09:32 GMT, while gold futures slipped 0.7% to $4,127.59 per ounce.

The precious metal had fallen 1.6% on Tuesday after escalating U.S.-Iran tensions strengthened the U.S. dollar and fueled expectations that inflationary pressures could keep interest rates elevated for longer.

Washington launched fresh military strikes against Iran and revoked licenses allowing Iranian oil exports in response to Tehran's attacks on commercial vessels in the Strait of Hormuz.

The latest developments have raised doubts over the future of the June framework agreement between the United States and Iran, as investors question whether both sides can still reach a broader diplomatic settlement. Despite the renewed conflict, U.S. officials indicated that negotiations with Iran remain ongoing.

Beyond geopolitical developments, investor focus has shifted to the release of the Federal Reserve's June meeting minutes. Market participants are looking for additional insight into the central bank's policy outlook and the timing of any future interest rate adjustments.

Expectations surrounding U.S. monetary policy have been a key driver of gold prices since mid-June. The safe-haven metal recently found support after weaker-than-expected employment data reduced expectations of additional rate hikes this year.

However, the Fed maintained a relatively hawkish tone during its June meeting, with several policymakers expressing support for keeping interest rates higher for longer—a stance that typically weighs on non-yielding assets such as gold.

Investors will closely analyze the Fed minutes for further details on policymakers' thinking, while any signals from the central bank under its new Chair, Kevin Warsh, are also expected to influence market sentiment and the outlook for gold prices.

Share:

Read More