17.07.2026 08:20
Gold prices are heading for their sharpest weekly decline in six weeks. While rising inflation due to US-Iran tensions boosting oil prices and expectations of a Fed rate hike pressure gold, the ounce gold lost 3.2% weekly. Meanwhile, the gram gold is trading at 6,050 lira with an increase.
Although gold prices rose on the last trading day of the week, they continue to post strong weekly losses. The tension between the US and Iran, which has driven oil prices higher, has increased inflation concerns and led investors to reassess their interest rate expectations.
Spot gold's ounce price rose 0.3% to trade at $3,990. After testing its lowest level since July 1 during the day, the ounce of gold is still heading for its steepest weekly drop since June 1, losing 3.2% over the week.
GRAM GOLD AT 6,000 LIRA LEVEL
Domestically, gram gold is trading at 6,050 lira levels, up 0.5%.
OIL PRICES INCREASED INFLATION CONCERN
KCM Trade Chief Market Analyst Tim Waterer stated that despite US consumer and producer inflation data for June coming in below expectations, the sharp rise in oil prices prevented a positive atmosphere in the markets.
Waterer emphasized that geopolitical risks in the Middle East persist, and concerns about inflation and bond yields continue to pressure gold prices.
Following renewed tension between the US and Iran, concerns that oil flows through the Strait of Hormuz could be restricted, and Tehran's request that the Houthis be ready to close the Red Sea export route, caused oil prices to rise approximately 12% this week.
INTEREST RATE HIKE EXPECTATIONS STRENGTHENED
The expectation that the rise in oil prices could reignite inflation also increased the likelihood of a rate hike by the US Federal Reserve (Fed).
Gold, which offers no interest yield, remains under pressure as investors shift to interest-bearing assets in a high-interest-rate environment. Following Dallas Fed President Lorie Logan's call for a rate hike, Fed Vice Chairman Philip Jefferson also stated they are open to raising rates if no improvement in inflation is seen in the short term.
In money markets, according to CME FedWatch data, investors are pricing in a 73% chance of a Fed rate hike in December.