Spot gold loses 0.2% and stands at $4,037.29 per ounce, weighed down by rising crude prices and expectations that the Federal Reserve will raise rates in September.
The price of gold recorded a slight decline in the session on July 24, trading at $4,037.29 per ounce, 0.2% lower than the previous day. The precious metal has accumulated a drop of about $130 from its peak over the last two weeks, according to market data.
Behind this movement is the surge in Brent crude, which surpassed $100 per barrel due to tensions in the Middle East. The rising energy costs rekindle fears of persistent inflation, leading investors to anticipate that the Federal Reserve will maintain or even raise interest rates.
When rates are high, gold, which does not generate interest or dividends, loses appeal compared to yielding assets like bonds. This effect has been noted in recent sessions: gold had already dropped 2% the day before July 24.
US gold futures for August 2026 also fell 0.3%, to $4,039.80 per ounce. Despite the temporary drop, the precious metal has accumulated a weekly gain of approximately 0.5%.
Market attention is now focused on the Federal Reserve's monetary policy meeting next week. Although consensus expects the central bank to keep rates unchanged at that meeting, CME's FedWatch tool assigns an 81% probability to a hike in September.
Analysts point out that gold has been trading in a range between $3,980 and $4,170 per ounce for weeks. When the price approaches or falls below $4,000, strong buying pressure emerges that halts further declines and pushes the price upwards.
In the market for other precious metals, silver rose 0.1% to $57.76 per ounce, marking a weekly advance of 3.4%. In contrast, platinum fell 1% to $1,583.91 per ounce, and palladium lost 1.7% to $1,236.16 per ounce, both showing a downward weekly trend.
For gold investors, the key will be the Fed's decision next week and the evolution of oil prices. If crude continues to rise, inflationary pressure could delay rate cuts and keep gold in a sideways range over the coming months.
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