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2026.07.0912:19:05UTC+00Gold Rebounds Above $4,100 as Dollar Softens

Gold rose above $4,100 an ounce on Thursday, supported by a weaker US dollar, though further gains were limited as investors remained focused on escalating tensions in the Middle East and their potential impact on inflation and monetary policy. The US military reported fresh strikes on Iran on Wednesday, triggering retaliatory attacks on Kuwait and Bahrain and further intensifying regional strains. However, US President Donald Trump said Iran had reached out to seek a deal, easing fears of a broader conflict.

At the same time, minutes from the Federal Reserve’s latest meeting indicated mounting concern about inflation, with several policymakers arguing for a rate increase before the Fed ultimately opted to leave rates unchanged last month. Futures markets now imply a 63% probability of a rate hike in September.

In separate developments, HSBC cut its average gold price forecast for 2026 to $4,560 from $4,864, and for 2027 to $4,925 from $5,000.

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