Gold Steadies as Middle East Tensions Weigh on Markets

2026-07-07 14:03 By Joana Ferreira 1 min. read

Gold trimmed earlier losses to trade flat at $4,170 per ounce on Tuesday, as investors assessed escalating Middle East hostilities and awaited the Federal Reserve’s June meeting minutes for clues on monetary policy.

The precious metal had reached a two-week high on Monday after a softer-than-expected US jobs report led markets to scale back expectations for near-term interest rate hikes.

However, persistent inflation concerns suggest the Fed may still maintain a "higher for longer" stance, with traders pricing in a 60% chance of a September rate hike.

Meanwhile, oil prices edged higher after two tankers were struck in the Strait of Hormuz, and Iran stated it would halt peace talks unless President Trump ceased his repeated threats to restart the war.

Elsewhere, China extended its gold-buying streak to 20 months, with reserves at 75.44M oz, while Hong Kong launched a gold clearing system and revived futures trading to boost its regional hub status.



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Gold Steadies as Middle East Tensions Weigh on Markets
Gold trimmed earlier losses to trade flat at $4,170 per ounce on Tuesday, as investors assessed escalating Middle East hostilities and awaited the Federal Reserve’s June meeting minutes for clues on monetary policy. The precious metal had reached a two-week high on Monday after a softer-than-expected US jobs report led markets to scale back expectations for near-term interest rate hikes. However, persistent inflation concerns suggest the Fed may still maintain a "higher for longer" stance, with traders pricing in a 60% chance of a September rate hike. Meanwhile, oil prices edged higher after two tankers were struck in the Strait of Hormuz, and Iran stated it would halt peace talks unless President Trump ceased his repeated threats to restart the war. Elsewhere, China extended its gold-buying streak to 20 months, with reserves at 75.44M oz, while Hong Kong launched a gold clearing system and revived futures trading to boost its regional hub status.
2026-07-07
Gold Eases as FOMC Minutes Eyed
Gold eased below $4,150 an ounce on Tuesday, but held most of last week's gains as investors awaited the minutes of the Federal Reserve’s June meeting for fresh clues on the outlook for interest rates. Data released last week showed US job growth slowed sharply in June, while payroll figures for the previous two months were revised lower, leading markets to scale back expectations of a near-term rate hike. Traders are now pricing in roughly a 50% chance of a Fed rate increase in September, down from about two-thirds before the latest employment report. The precious metal also drew support from lower oil prices as traffic through the key Strait of Hormuz continued to recover following the implementation of the interim US-Iran peace agreement. Meanwhile, Middle Eastern producers ramped up output and cut prices in response to changing market conditions, while OPEC+ agreed to increase production quotas for next month.
2026-07-07
Gold Dips as Dollar Firms
Gold fell to $4,140 an ounce on Monday, retreating from two-week highs due to a stronger US dollar. However, losses were limited as signs of a cooling US labor market reduced expectations of a Federal Reserve rate hike. Last week’s data revealed a significant slowdown in US job growth in June, along with downward revisions for the previous two months, prompting markets to dial back near-term rate hike bets. Meanwhile, oil prices edged lower as recovering energy flows through the Strait of Hormuz and the prospect of increased OPEC+ supply raised concerns about a potential glut. Investors now await the Fed’s meeting minutes, due Wednesday, with markets pricing in over a 50% chance of a September rate hike. JPMorgan noted in a Friday report that demand from key sectors may not be as strong as previously expected, capping gold’s rise to $4,300 an ounce in Q3 and $4,500 in Q4.
2026-07-06