Gold heads for weekly drop as Gulf attacks reinforce rate-hike bets
Spot gold holds its ground at US$4,122.09 per ounce as of 0047 GMT and heads for an over 1% weekly fall
Published Fri, Jul 10, 2026 · 09:56 AM
[BENGALURU] Gold steadied early on Friday (Jul 10) as markets assessed risks of inflation stemming from the recent US-Iran military escalation in the Middle East, with renewed rate hike expectations putting the non-yielding metal on course for a weekly decline.
Spot gold held its ground at US$4,122.09 per ounce, as of 0047 GMT, and was headed for an over 1 per cent weekly fall. US gold futures for August delivery were down 0.2 per cent at US$4,131.50.
Iranian armed forces launched attacks on US military infrastructure in Gulf states on Thursday following US strikes on Iran’s southern coastal and eastern provinces, further eroding a three-week-old ceasefire.
The latest round of strikes has fuelled inflation concerns and reinforced the probability of the US Federal Reserve raising interest rates this year.
Markets are pricing in a 64 per cent chance of a September rake hike from around 54 per cent a week before, according to CME’s FedWatch tool.
Minutes from the Fed’s June meeting, released earlier this week, showed growing concerns among policymakers about elevated inflation, with a few participants seeing a case for raising interest rates.
New York Fed President John Williams said on Thursday he did not expect energy prices to rise persistently for the rest of the year despite renewed hostilities in the Middle East.
The number of Americans filing new claims for unemployment benefits fell last week, suggesting that the labour market remained stable despite a slowdown in job growth in June.
HSBC cut its average gold price forecasts for 2026 and 2027 on Thursday, citing a hawkish shift in US monetary policy expectations and a stronger US dollar.
The National Bank of Poland (NBP) has 632.4 tonnes of gold reserves worth about 308 billion zlotys (US$81.68 billion), NBP governor Adam Glapinski said on Thursday.
Fortuna Mining expects to receive the final permit for its Diamba Sud gold project in Senegal within weeks, its chief executive told Reuters.
Elsewhere, spot silver eased 0.1 per cent to US$59.94 per ounce, platinum gained 0.2 per cent to US$1,614.22 and palladium added 0.4 per cent to US$1,252.75. All three metals were on track for a weekly loss. REUTERS
