2026.07.1013:45:13UTC+00Gold Dips as Oil Surge Fuels Fed Tightening Fears

Gold slipped to $4,100 an ounce on Friday, finishing the week about 1.5% lower, as a jump in crude oil prices and rising US-Iran tensions fueled expectations that the Federal Reserve may keep monetary policy tight for longer. Oil gained 5% over the week following renewed clashes between US and Iranian forces, intensifying inflation worries and leading markets to price in nearly a 60% probability of a Fed rate hike in September.

Investors will be closely monitoring next week’s US inflation data and testimony from Fed Chair Kevin Warsh for further guidance on the policy outlook. Minutes from the Fed’s June meeting showed mounting concern over inflation, with some policymakers having favored a rate increase before the decision to leave rates unchanged.

In physical markets, Indian gold traded at a steep discount this week amid heightened price volatility, while Chinese demand held steady. Separately, China’s central bank reported its largest monthly increase in gold reserves in more than 2½ years in June.