Gold tumbles to eight-month low below $4,000 as Middle East tensions reinforce US rate hike bets
작성자 Lallalit Srijandorn
수정됨: 16 Jul 2026
인기 기사
Gold price (XAU/USD) falls to near an eight-month low around $3,975 during the early Asian session on Friday. The precious metal extends its downside as rising tensions in the Middle East raise inflation concerns and reinforce expectations of elevated US interest rates.
- Gold price slumps to near $3,975 in Friday’s early Asian session.
- Iran tells Houthis to close Red Sea gateway if US hits power network.
- Escalating Middle East conflict fueled concerns that the Fed could hike interest rates this year.
Gold price (XAU/USD) falls to near an eight-month low around $3,975 during the early Asian session on Friday. The precious metal extends its downside as rising tensions in the Middle East raise inflation concerns and reinforce expectations of elevated US interest rates.
Reuters reported on Thursday that Iran has asked Yemen’s Houthi movement to stand ready to close the Red Sea oil route if the US strikes Iranian power infrastructure, posing a potent new threat to global energy supplies. This action came after US President Donald Trump’s threat to attack Iran's power infrastructure on Tuesday.
Any threat to the Red Sea risks hugely exacerbating the global energy crisis triggered by Iran's closure of the Strait of Hormuz and underscores the explosive risks stemming from a new round of warfare. This, in turn, could push crude oil prices up and could prompt central banks to hold rates at elevated levels for longer, weighing on gold's appeal as a non-yielding asset.
The developments surrounding Middle East conflicts overshadow recent optimism over easing inflation. Data released on Tuesday showed that US Consumer Price Index (CPI) inflation slowed in June, while data from Wednesday showed a decline in the Producer Price Index (PPI).
Traders are now pricing in nearly a 55% odds that the Federal Reserve (Fed) will hike rates in September, according to the CME FedWatch Tool.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
100만 명이 넘는 사용자가 FXStreet를 통해 실시간 시장 데이터, 차트 도구, 전문가 인사이트, 포렉스 뉴스를 이용합니다. 포괄적인 경제 캘린더와 교육 웨비나는 트레이더가 정보를 유지하고 신중한 결정을 내리도록 돕습니다. FXStreet는 바르셀로나 본사와 전 세계 지역에 걸쳐 약 60명의 팀으로 구성되어 있습니다.
더 읽기
