Gold Price Today: Gold prices were trading below the key USD 4,000 per ounce level on Friday, July 17, as rising inflation concerns, geopolitical tensions in the Middle East, and expectations of higher interest rates weighed on investor sentiment.
Spot gold prices edged higher during the session but remained on track for a second consecutive weekly decline. At around 7:20 am, spot gold was trading 0.1 per cent higher at USD 3,981.73 per ounce, gaining about USD 6. However, the precious metal was still down nearly 3.4 per cent for the week.
Silver prices also witnessed weakness, with spot silver falling 0.7 per cent to USD 55.15 per ounce. Similar to gold, silver was headed for a weekly decline, losing around 8 per cent during the week.
Domestic gold and silver futures prices
In the Indian domestic market, gold and silver futures were not trading at the time of reporting. However, the previous settlement prices stood at:
- Gold futures: Rs 1,40,209 per 10 grams
- Silver futures: Rs 2,15,665 per kilogram
Middle East conflict drives oil prices higher
Escalating tensions in the Middle East continued to impact precious metal markets. The US Central Command (CENTCOM) stated that American forces launched another wave of strikes on Iran, marking the sixth consecutive night of operations aimed at weakening Iranian military capabilities.
The ongoing geopolitical uncertainty pushed crude oil prices higher, with investors closely watching developments in the region. Brent crude futures rose 0.3 per cent to USD 85.14 per barrel, while West Texas Intermediate (WTI) crude traded near the USD 80 per barrel mark.
Higher oil prices have increased concerns over a fresh rise in inflation, which could influence central banks to maintain tighter monetary policies.
Higher interest rate expectations pressure gold prices
Rising inflation risks have strengthened expectations that central banks may keep interest rates elevated. Analysts are currently pricing in at least one interest rate hike in 2026, with markets assigning more than a 70 per cent probability of a Federal Reserve rate increase.
Recent hawkish comments from Dallas Federal Reserve officials also added pressure on bullion prices. Officials indicated that moderately higher interest rates could help balance economic risks and support the Federal Reserve’s dual mandate goals.
Higher interest rates typically weigh on gold because the metal does not generate interest income. When bond yields rise, investors often shift towards yield-generating assets, increasing the opportunity cost of holding non-yielding gold.
Weak dollar provides some support to gold
Despite pressure from higher rates and inflation concerns, a weaker US dollar offered some support to gold prices.
The US Dollar Index, which measures the greenback against a basket of six major currencies, was headed for a weekly decline. However, during Friday’s session, the index gained 0.03 per cent to trade at 100.76.
A stronger dollar generally makes gold more expensive for buyers using other currencies, reducing demand for the precious metal.
Gold Price Outlook
Market participants will continue monitoring developments in the Middle East, crude oil prices, inflation trends, and Federal Reserve policy signals. Key factors influencing gold prices ahead:
- US Federal Reserve interest rate outlook
- Middle East geopolitical developments
- Crude oil price movement
- US dollar strength
- Global inflation data
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
