Gold edges up as Brent eases, West Asia developments in focus ahead of Fed meet

FILE PHOTO: Gold bangles are displayed inside a jewellery store in Delhi. | Photo Credit: BHAWIKA CHHABRA

Gold edged up on Friday as ​Brent crude retreated from above $100 a barrel, while investors ⁠assessed developments in the West Asia conflict and their implications for inflation ahead of the US interest rate decision next week.

Spot gold was up ‌0.1% at $4,052.78 per ounce by 4:10 p.m. EDT (2010 GMT), after falling about 2% in the previous session. Prices ‌were up 0.9% for the week so far, supported ‌by dip-buying ⁠earlier in the week.

US gold futures for August ⁠delivery settled 0.5% higher at $4,070.80.

“Gold and silver are carving out a base around $3,950 and $55, respectively, despite relentlessly higher yields. While a stop-loss move below can’t ​be ruled out on a ‌sharp war escalation, gold feels ready to move back higher ... A Fed clearly on hold next week would help,” said Tai Wong, an independent metals trader.

Brent crude oil prices fell ‌over 4%, after rising over 7% to settle above $100 in ​the previous session for the first time since May, after Iran-aligned Houthis said they struck two ⁠Saudi oil tankers in the Red Sea.

Bullion has fallen about 23% since the US-backed war with Iran began in late February, pressured ‌by expectations that war-driven inflation could keep interest rates higher for longer.

While gold is seen as a hedge against inflation, higher rates typically weigh on the non-yielding metal.

Investors now await the US Federal Reserve’s policy meeting outcome next week, when it is largely expected to keep rates unchanged.

Traders are pricing in about ‌an 82% chance of a US rate hike in September, according to the ​CME FedWatch Tool.

“Recent strength in bullion appears driven largely by dip-buying and short covering. This follows the ⁠sharp correction from record highs earlier this year ... Elevated oil prices ⁠and rising yields are likely to cap any recovery, leaving $4,000 as the key near-term level to watch,” analysts at ‌ING said in a note.

Among other metals, spot silver rose 0.8% to $58.11 per ounce, platinum fell 0.8% to $1,587.17, and palladium fell ​1.4% to $1,239.20.

Published on July 25, 2026