Gold Price Today, July 14: Gold prices slipped below the key USD 4,000 per ounce level again as rising crude oil prices, driven by escalating tensions between the US and Iran, renewed concerns over inflation and the possibility of higher interest rates in 2026.
Spot gold prices todayAs of 7:05 am, spot gold was down 0.1 per cent and trading at USD 3,997.66 per ounce. In the previous session, spot gold prices declined nearly 3 per cent and fell below the USD 4,000 mark.
Gold, Silver Price on MCX
In the domestic market, gold and silver prices were not available at the time of writing. However, gold futures on the Multi Commodity Exchange (MCX) settled at Rs 1,40,036 per 10 grams, while silver futures settled at Rs 2,17,419 per kilogram.
US-Iran conflict escalation drives crude oil prices higher
The latest decline in precious metal prices comes amid renewed geopolitical tensions between the US and Iran. The US military carried out a third consecutive night of strikes against Iran, with the US Central Command stating that the operation was aimed at weakening Iranian military capabilities and reducing attacks on civilians and commercial shipping in the Strait of Hormuz.
The uncertainty surrounding the Strait of Hormuz has pushed crude oil prices higher, adding to global inflation concerns.
Brent crude oil futures gained more than 1 per cent to trade above USD 84.26 per barrel, while WTI crude oil futures also moved higher and traded close to the USD 80 per barrel mark.
Rising oil prices fuel inflation worries globally
Higher crude oil prices are increasing concerns over inflation as energy costs rise across the global economy. Expensive oil can raise transportation, manufacturing, and production costs, which may eventually impact consumer prices.
These inflationary pressures have increased expectations of tighter monetary policy, with markets now pricing in a higher probability of a Federal Reserve rate hike in 2026.
Higher interest rates put pressure on gold prices
According to the CME FedWatch Tool, there is more than a 75 per cent probability of a rate hike during the September FOMC meeting.
Gold prices generally come under pressure when interest rates rise, as higher yields on interest-bearing assets increase the opportunity cost of holding non-yielding assets like gold.
Investors often shift towards bonds and other fixed-income instruments during periods of higher interest rates, reducing demand for gold.
Dollar weakness provides support to gold prices
However, the downside in gold prices remained limited due to mild weakness in the US dollar. The US dollar index, which measures the greenback against a basket of six major currencies, declined 0.1 per cent to 101.25.
A weaker US dollar typically supports gold prices because it makes the precious metal cheaper for buyers holding other currencies. It also enhances gold’s appeal as a safe-haven asset during periods of uncertainty.
Investors await Fed comments and US economic data
Market participants are now focusing on upcoming comments from Federal Reserve officials and key US economic data releases expected later this week. These developments could provide further clues about the future path of US interest rates and the broader direction of the world’s largest economy.
With geopolitical tensions, inflation concerns, and monetary policy expectations influencing markets, gold prices are likely to remain volatile in the near term.
(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.)
