Gold rises 1% as Middle East ceasefire talks cap oil-led inflation fears
Gold prices jumped 1.6% to $4,071.59 per ounce by 0750 GMT on Tuesday as investors focused on diplomatic efforts to ease U.S.-Iran tensions rather than fresh conflict, tempering oil-driven inflation risks.
Source: The Star · July 21, 2026 at 6:22 PM · AI-assisted report
KUALA LUMPUR, 22 JULY 2026 —
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Gold prices jumped 1.6% to $4,071.59 per ounce by 0750 GMT on Tuesday as investors focused on diplomatic efforts to ease U.S.-Iran tensions rather than fresh conflict, tempering oil-driven inflation risks.
Market Impact
U.S. gold futures for August delivery advanced 1.5% to $4,076 per ounce. The gains came after a senior Iranian official said mediators had proposed a 10-day ceasefire to salvage the interim nuclear deal, Reuters reported on Monday.
Oil prices slipped as markets balanced mediation reports against ongoing attacks and threats of a Houthi-led naval blockade of Saudi Arabia. Brent crude had surged to a one-month high on Monday, fueling calls from some U.S. policymakers for higher interest rates to curb persistent inflation.
Higher rates raise the opportunity cost of holding non-yielding assets like gold. The Federal Reserve is widely expected to hold its benchmark rate steady at next week’s meeting, but traders are pricing a 64% chance of a hike in September, according to the CME FedWatch Tool.
Silver led gains among precious metals, surging 4.5% to $58.96 per ounce. Platinum rose 2.3% to $1,630.21, while palladium climbed 2.8% to $1,288.02.