Bullion gains up to 1.8% to trade above US$4,080 an ounce, after ending the previous session 0.2% lower
Published Tue, Jul 21, 2026 · 09:24 AM — Updated Tue, Jul 21, 2026 · 03:47 PM
[SINGAPORE] Gold touched its highest level in a week on dip-buying as traders monitored developments in the Middle East for clues about the energy price impact on inflation.
Bullion gained as much as 1.8 per cent to trade above US$4,080 an ounce, after ending the previous session 0.2 per cent lower.
Oil edged down after two days of gains, even after US forces launched a fresh round of strikes on Iranian targets and US President Donald Trump vowed Teheran “will pay” for killing three US soldiers.
Yemen’s Iran-backed Houthi rebel group has entered the fray, vowing to impose a maritime blockade on Saudi Arabia, prompting a military coalition led by the kingdom to say it had taken steps to protect vessels sailing the Red Sea.
Despite the escalation, Iran said mediators were in touch with proposals on how to ease hostilities after more than a week of worsening clashes, while Reuters reported a proposal for a 10-day cessation of strikes.
The conflict, now in its fifth month, is driving up prices of commodities used in manufacturing and food production.
Traders are left to weigh higher energy costs and the prospect of the Federal Reserve raising interest rates against soft US economic data. Elevated borrowing costs are a headwind for non-yielding bullion.
Despite the latest clashes, bullion is showing some signs of support at the key psychological level of US$4,000 an ounce, an indication of dip-buying that was also seen last week.
However, gold’s upside may remain capped unless oil prices back off and expectations of Fed tightening recede, said Christopher Wong, an analyst at OCBC.
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For now, daily momentum gauges are not showing a clear bias, he said.
A longer view is that “the pace of decline should potentially moderate if macro conditions do not deteriorate further”, he said.
Spot gold was 1.8 per cent higher at US$4,078.44 an ounce as at 3 pm in Singapore.
Silver was 4.3 per cent higher at US$58.86 an ounce. Platinum and palladium also rose, while the Bloomberg Dollar Spot Index, a gauge of the US currency, was 0.1 per cent lower. BLOOMBERG
