Gold slips from two-week high as oil rises; Fed meeting looms

KUALA LUMPUR, 23 JULY 2026 —

Gold fell on Thursday after touching its highest level in two weeks, as rising oil prices from fresh Middle East tensions weighed on the metal while traders awaited the Federal Reserve’s next policy move.

Spot gold for immediate delivery dropped 0.6% to $4,103.39 an ounce by 07:13 GMT, down from Wednesday’s peak of $4,165.87—the highest since July 7, according to Reuters data. U.S. gold futures for August delivery fell 1.1% to $4,106.40.

Oil prices climbed to their highest in more than six weeks after the U.S. launched fresh strikes on Iran and Yemen’s Houthis targeted oil tankers in the Red Sea, raising supply disruption concerns.

Two-year U.S. Treasury yields, which react to interest-rate expectations, rose to a 17-month high as traders priced in the risk that renewed energy disruptions could reignite inflation.

The dollar eased 0.1%, making dollar-priced gold slightly more affordable for foreign holders, Reuters data showed.

“Oil continues to rise, reinforcing inflation pressures and expectations of Fed rate hikes, which limits gold’s upside even as the dollar weakens,” said Jigar Trivedi, senior research analyst at IndusInd Securities.

The Fed is widely expected to keep rates unchanged at next week’s meeting, but markets are pricing in at least one increase by December. Traders see a 77% chance of a rate rise in September, according to the CME FedWatch Tool.

Higher rates reduce the relative appeal of non-yielding assets like gold.

Silver fell 1.3% to $58.90 an ounce, platinum dropped 1% to $1,628.63 and palladium lost 1.2% to $1,274.96.

The European Central Bank is also expected to leave rates unchanged on Thursday, though it has left the door open to another increase in September.