05.08.2026 10:30
Weakness in expectations of US Federal Reserve (Fed) interest rate hikes, a weakening dollar, and a drop in oil prices pushed gold prices to record highs. While diplomatic contacts regarding the Strait of Hormuz on the US-Iran front changed market pricing, spot gold rose to $4,127 per ounce, and in the domestic market, gram gold reached historic levels at 6,324 Turkish Liras.
The weakening of expectations for interest rate hikes by the U.S. Federal Reserve (Fed), a weakening dollar, and a pullback in oil prices have pushed gold to record highs. With the decline in the dollar index, spot gold climbed to $4,127, while in the domestic market, gram gold reached 6,324 TL.
GOLD RISES FOR THREE DAYS IN GLOBAL MARKETS
In global markets, gold is continuing its third consecutive trading day with gains, buoyed by the weak dollar. The dollar's depreciation ahead of U.S. employment data has made the precious metal, which offers no interest yield, highly attractive to foreign investors.
With the latest developments:
- Spot gold gained 1.3% to reach $4,127.
- Gram gold in the domestic market rose 1.5% to reach 6,324 TL.
DECLINE IN OIL AND RATE EXPECTATIONS BENEFIT GOLD
The pullback in oil prices also continues to indirectly support gold prices. Falling energy costs ease global inflation pressure while weakening expectations for high interest rate policies by central banks. This scenario strengthens gold's safe-haven demand.
MARKETS FOCUSED ON THE STRAIT OF HORMUZ AND DIPLOMATIC CONTACTS
Diplomatic developments between Washington and Tehran are also a key agenda item in pricing. Contacts aimed at reducing tensions between the U.S. and Iran, along with expectations that the Strait of Hormuz could reopen to maritime traffic, are moving the markets.
- Brent Oil: After a sharp decline exceeding 5% the previous day to its lowest close since July 13, it recovered 0.3% on news of Qatar's mediation, trading at $79.62.
- WTI Crude Oil: Rose 0.2% to $75.90.
NEGOTIATIONS ON THE TABLE, BUT NO ACCEPTANCE YET
During a phone call between Qatar's Emir, Sheikh Tamim bin Hamad Al Thani, and U.S. President Donald Trump, the possibility of a lasting agreement was discussed. Although Trump announced that negotiations have begun, the Iranian administration has not yet confirmed official talks. The most critical issue in the negotiations is reported to be control over the Strait of Hormuz.
OIL INVENTORIES RISE, EIA DATA AWAITED
Activity continues on the supply side as well. According to data from the American Petroleum Institute (API), U.S. crude oil inventories increased by approximately 2.7 million barrels in the week of July 31. Market participants are focused on the official inventory data from the U.S. Energy Information Administration (EIA) due later today.