Gold: Fed repricing supports but upside capped by energy risks – ING
By FXStreet Insights Team
Updated: 16 Jul 2026
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ING strategists Warren Patterson and Ewa Manthey report Gold has risen for a second session as softer US producer price data weighs on the Dollar and Treasury yields, reducing expectations of near-term Federal Reserve tightening.
ING strategists Warren Patterson and Ewa Manthey report Gold has risen for a second session as softer US producer price data weighs on the Dollar and Treasury yields, reducing expectations of near-term Federal Reserve tightening. Markets now assign a much lower probability to a July rate hike, which supports Gold. However, they caution that ongoing Middle East tensions and elevated energy prices could limit upside.
Lower Fed odds aid bullion
"Gold rose for a second straight session as softer-than-expected US producer price data weighed on the dollar and Treasury yields."
"Lower energy costs helped ease inflation pressures, reducing expectations of near-term Federal Reserve tightening."
"Markets now price only a 12% chance of a July rate hike, down from almost 31% a week ago. Lower rate expectations are supportive for gold."
"But we believe upside could remain limited in the near term if Middle East tensions continue to support energy prices and keep inflation risks elevated."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
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