Gold climbs to two-week high as investors watch West Asia conflict

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