Published Thu, Jul 23, 2026 · 08:02 AM
GOLD extended gains, supported by dip-buyers who scooped up the metal after prices have drifted lower in recent weeks on concerns that US inflationary pressure will prompt the US Federal Reserve to raise interest rates.
Bullion rose as much as 2.1 per cent to climb above US$4,160 an ounce on Wednesday (Jul 22), after advancing 1.7 per cent in the previous session. Silver climbed near US$60 an ounce.
Even amid losses, gold prices recently have largely held above the US$4,000 mark, which some traders see as a support level. Declines in volatility for the precious metal are also drawing buyers, said Justin Lin, an analyst at Global X ETFs, referring to the sharp decline in volatility to a level last seen in early June.
“The recent rebound feels mostly flow-driven, sparked by a bit of dip-buying and sheer relief that the US$4,000-an-ounce floor held,” said Ryan McKay, senior commodity strategist at TD Securities. “However, I don’t expect this to be the start of a new structural trend. Energy prices are just starting to pick up again, and that concern will ultimately cap the upside.”
The gains in gold came amid renewed hostilities between the US and Iran. The US widened the scope of its airstrikes on Iran overnight, as US President Donald Trump and officials in Teheran signalled a renewal of peace talks is unlikely in the near-term.
Oil prices pushed higher while bond yields rose. Higher energy prices have raised concerns over US inflation and higher interest rates, which dim gold’s appeal.
Earlier in 2026, the Middle East conflict helped bring a multi-year bull run for gold to an end. Traders are now weighing the impact of higher energy prices against soft US economic data as they scan for clues about the US Fed’s path for interest rates. Elevated borrowing costs are a headwind for non-yielding bullion.
Spot gold was 1.8 per cent higher at US$4,150.28 an ounce as of 10.24 am in New York on Wednesday. Silver was up 2.6 per cent at US$60.3019 an ounce. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed. BLOOMBERG
