Gold Slumps Over 2% as Middle East Tensions Fuel Rate Hike Fears

2026-07-13 14:27 By Joana Ferreira 1 min. read

Gold fell more than 2% to $4,020 per ounce on Monday, marking a second consecutive day of losses, as escalating Middle East conflicts heightened inflation concerns and reinforced expectations that US interest rates will remain elevated for longer.

Over the weekend and into Monday, US and Iranian forces exchanged heavy missile and drone attacks.

Tehran claimed it had targeted US military facilities across the Gulf and closed the Strait of Hormuz, pushing oil prices up by over 4%.

In response, investors increased bets on Federal Reserve rate hikes, with markets pricing in a nearly 70% chance of a September increase.

Meanwhile, Fed Chair Kevin Warsh is set to deliver his first monetary policy testimony before Congress on Tuesday, with markets closely analyzing his remarks for further policy signals.

Additionally, the US will release key economic data this week, including June’s consumer price index and retail sales figures.



News Stream
Gold Slumps Over 2% as Middle East Tensions Fuel Rate Hike Fears
Gold fell more than 2% to $4,020 per ounce on Monday, marking a second consecutive day of losses, as escalating Middle East conflicts heightened inflation concerns and reinforced expectations that US interest rates will remain elevated for longer. Over the weekend and into Monday, US and Iranian forces exchanged heavy missile and drone attacks. Tehran claimed it had targeted US military facilities across the Gulf and closed the Strait of Hormuz, pushing oil prices up by over 4%. In response, investors increased bets on Federal Reserve rate hikes, with markets pricing in a nearly 70% chance of a September increase. Meanwhile, Fed Chair Kevin Warsh is set to deliver his first monetary policy testimony before Congress on Tuesday, with markets closely analyzing his remarks for further policy signals. Additionally, the US will release key economic data this week, including June’s consumer price index and retail sales figures.
2026-07-13
Gold Falls on Renewed US-Iran Strikes
Gold slipped below $4,100 an ounce on Monday, remaining under pressure as renewed missile strikes between the US and Iran drove oil prices higher, fueling expectations of interest-rate hikes to curb inflation. The US carried out its fourth strike in a week against Iran on Sunday in retaliation for an Iranian attack on a Cyprus-flagged container ship. Tehran declared that the Strait of Hormuz would be closed "until further notice," though the claim was dismissed by the US Central Command. Investors are also awaiting key US inflation data due this week for further clues on the Federal Reserve's policy outlook. Markets currently expect the Fed to deliver one more interest-rate hike before the end of the year. Meanwhile, Fed Chair Kevin Warsh is scheduled to make his first appearance before the US Congress on Tuesday.
2026-07-12
Gold Dips as Oil Surge Fuels Fed Tightening Fears
Gold edged lower to $4,100 an ounce on Friday, ending the week down about 1.5%, as rising crude oil prices and escalating US-Iran tensions raised concerns that the Federal Reserve may maintain tight monetary policy for longer. Oil surged 5% this week after renewed strikes between US and Iranian forces, heightening inflation fears and prompting markets to price in a near 60% chance of a September Fed rate hike. Investors will closely watch US inflation data due next week and Fed Chair Kevin Warsh’s testimony for further policy cues. Minutes from the Fed’s June meeting revealed growing inflation concerns, with some policymakers having favored a rate hike before rates were left unchanged. Meanwhile, gold faced a wide discount in India this week due to price volatility, while demand in China remained steady. China’s central bank reported its largest monthly increase in gold reserves in over 2-1/2 years in June.
2026-07-10