2026.07.0114:00:33UTC+00Gold Jumps 2% on Warsh’s Remarks

Gold prices jumped 2% to $4,090 per ounce on Wednesday, rebounding from near eight-month lows, as investors weighed remarks from new Federal Reserve Chair Kevin Warsh and renewed US-Iran tensions that heightened concerns over Middle East stability.

Speaking at the ECB’s annual forum in Sintra, Portugal, Warsh noted that inflation risks and expectations have eased in recent weeks, but reaffirmed the Fed’s commitment to bringing inflation back to its 2% target. He underscored the central bank’s priority of price stability, echoing the stance he outlined at his first press conference last month.

Warsh also confirmed his decision to scrap traditional “forward guidance” on interest-rate policy, signaling a shift in the Fed’s communication strategy. Even so, investors continued to price in US rate hikes later this year to rein in inflation against the backdrop of a still-strong labor market.

At the same time, markets tracked developments in US-Iran peace efforts in Qatar, though direct talks between Washington and Tehran remained unlikely.