Gold Rises as Oil Prices Drop

2026-07-26 23:55 By Jam Kaimo Samonte 1 min. read

Gold climbed 1% toward $4,100 an ounce on Monday, moving away from nine-month lows as oil prices dropped sharply following a pause in hostilities between the US and Iran over the weekend, reducing concerns over supply disruptions and inflation.

The US suspended its nearly two-week campaign of strikes against Iran beginning late Friday without an official announcement, while Tehran said it had ended its retaliatory strikes in response and held discussions with Oman regarding the Strait of Hormuz.

Gold struggled in recent weeks amid escalating hostilities in the Middle East, with supply disruption spreading from the Strait of Hormuz to the Red Sea.

Meanwhile, the Federal Reserve is widely expected to leave interest rates unchanged on Wednesday before raising them in September, although some market participants believe the central bank could move as early as this week's meeting in response to renewed inflationary pressures.



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Gold Rises as Oil Prices Drop
Gold climbed 1% toward $4,100 an ounce on Monday, moving away from nine-month lows as oil prices dropped sharply following a pause in hostilities between the US and Iran over the weekend, reducing concerns over supply disruptions and inflation. The US suspended its nearly two-week campaign of strikes against Iran beginning late Friday without an official announcement, while Tehran said it had ended its retaliatory strikes in response and held discussions with Oman regarding the Strait of Hormuz. Gold struggled in recent weeks amid escalating hostilities in the Middle East, with supply disruption spreading from the Strait of Hormuz to the Red Sea. Meanwhile, the Federal Reserve is widely expected to leave interest rates unchanged on Wednesday before raising them in September, although some market participants believe the central bank could move as early as this week's meeting in response to renewed inflationary pressures.
2026-07-26
Gold Steadies After Sharp Drop as Markets Assess Middle East Risks
Gold prices were little changed at around $4,050 per ounce on Friday, steadying after a nearly 2% drop in the previous session as investors monitored developments in the Middle East for clues on energy-driven inflation risks and the outlook for US interest rates. Higher oil prices, driven by concerns over Gulf supply disruptions, have reinforced expectations that interest rates could remain higher for longer, reducing the appeal of non-yielding gold. Investors now await next week's Federal Reserve meeting, where rates are widely expected to remain unchanged, though markets still price in an roughly 80% chance of a hike in September. Meanwhile, the European Central Bank kept rates unchanged on Thursday while leaving the door open to a September increase. In Asia, gold discounts in India widened to a seven-week high as higher prices curbed demand, while buying interest improved in China.
2026-07-24
Gold Extends Losses
Gold prices fell toward $4,030 per ounce on Friday, extending a nearly 2% decline in the previous session, as surging oil prices fueled by the escalating Middle East conflict strengthened the case for tighter US monetary policy. President Donald Trump warned of expanded military action against Iran and vowed to hold Tehran accountable for any future Houthi attacks on commercial vessels in the Red Sea, helping lift Brent crude above $100 a barrel for the first time since May. Higher oil prices stoked inflation fears, boosting expectations of tighter Fed policy and pressuring non-yielding assets. Markets currently assign a 34% probability to a Fed rate hike next week, while the odds of a September increase have climbed above 81%. Meanwhile, fresh US tariffs of 10%–12.5% on imports from major trading partners added to the uncertain market backdrop. Gold is still heading for a modest weekly gain.
2026-07-24