Gold climbed to a two-week high on
Wednesday, supported by technical buying and safe-haven demand,
as investors monitored diplomatic efforts to moderate the Middle
East conflict and braced for next week’s U.S. Federal Reserve
meeting for clues on the interest-rate outlook.
Spot gold rose 1.1% to $4,121.90 per ounce by 1200
GMT, having hit its highest level since July 7 earlier in the
day. U.S. gold futures for August delivery gained 1.3%
to $4,128.00.
“Concerns that higher oil prices could fuel inflation and
keep interest rates higher for longer are being offset by
safe-haven demand and hopes that ongoing diplomatic efforts
between the U.S. and Iran could still lead to a de-escalation of
the conflict, easing pressure on oil prices,” said Ricardo
Evangelista, senior analyst at ActivTrades.
The current rebound in prices is likely to face headwinds
from volatile energy prices, but the $4,000 per ounce level
continues to provide strong technical support, he added.
Earlier on Wednesday, U.S. Secretary of State Marco Rubio said
Washington is willing to negotiate an end to the Iran crisis but
that Tehran is not serious about talks.
Meanwhile, three oil tankers loaded with Saudi crude for
China and India reversed course in the Red Sea on Tuesday after
threats from Yemen’s Iran-aligned Houthis, sending oil prices
higher.
Gold prices have fallen from record highs hit in January
after the war elevated energy prices, stoking inflation fears
and heightening the likelihood of higher-for-longer interest
rates. While gold is typically seen as an inflation hedge, high
interest rates tend to diminish the appeal of the non-yielding
asset.
The Fed is likely to keep its key interest rate steady for
the rest of 2026, a Reuters poll showed, with markets pricing in
two rate rises by the end of March next year.
Traders now anticipate about a 70% chance of an interest
rate hike in September, CME FedWatch Tool data showed.
Among other metals, spot silver rose 1% to $59.34 per
ounce, platinum gained 0.9% to $1,643.96, and palladium
inched up 2.3% to $1,311.00.
Published on July 22, 2026
