Gold prices swung between gains and
losses on Wednesday, as concerns around inflation and higher
interest rates rose after fresh US strikes on Iran lifted oil
and the dollar ahead of the release of the Federal Reserve’s
June meeting minutes.
Spot gold rose 0.5% to $4,125.59 per ounce by 0305
GMT, after dropping to its lowest since July 2 earlier in the
day. US gold futures for August delivery shed 0.5% to
$4,136.30.
“Over the past 24 hours, there was a little bit of a scare
again on the inflation front. So bonds came in lower, the dollar
popped a little, gold pulled back, and now seems to be kind of
stabilising after that correction,” said Ilya Spivak, head of
global macro at Tastylive.
“At this point, we’ve been watching gold attempt to carve
out a bottom.”
The US military unleashed a new wave of strikes against Iran
on Tuesday and revoked a licence allowing the country to sell
oil after three tankers were hit by projectiles in the Strait of
Hormuz.
US oil prices jumped nearly 3% in early trade, US
Treasury yields advanced, while the dollar clung to its highest
levels of the week against most of its peers as the strikes
against Iran put pressure on an already fragile ceasefire.
Markets have increased their bets for a September Federal
Reserve rate hike to an over 63% chance, up from about 57% on
Tuesday, the CME FedWatch tool showed.
Investors also awaited minutes of the Federal Open Market
Committee’s June 16-17 meeting, due later today, for fresh clues
on the interest rate path under Fed Chair Kevin Warsh.
While gold is seen as an inflation hedge, high interest
rates tend to weigh on the non-yielding asset.
Among other metals, spot silver rose 0.8% to $60.47
per ounce, platinum slipped 0.3% to $1,635.45 and
palladium dropped 0.6% to $1,268.64.
Published on July 8, 2026
