22.07.2026 10:00
Gold prices hit a two-week high as rising tensions in the Middle East, shipping disruptions in the Red Sea, and investors turning to buying ahead of the Fed's interest rate decision drove demand. Spot gold rose 1.6%, while gram gold gained 1.3% to reach 6,267 lira. Silver, platinum, and palladium prices also saw sharp increases.
Rising geopolitical tensions in the Middle East and investors' search for safe havens ahead of the US Federal Reserve's (FED) interest rate decision next week have driven gold prices higher. Following a sharp decline in recent days, spot gold rose to a two-week high due to buying.
Gold, which experienced its sharpest weekly drop since early June last week, recovered as investors turned to buying again. Spot gold rose 1.6 percent during the day to $4,139.64 per ounce, its highest level since July 7.
US August gold futures rose 1.7 percent to $4,144.20. Domestically, gram gold also benefited from the rise. Gram gold started the new day at 6,267 lira, gaining 1.3 percent.
CRISIS IN THE MIDDLE EAST STIRS MARKETS
The rising tensions in the Middle East were effective in the increase in gold. After threats from Iran-backed Houthis in Yemen, three major tankers carrying Saudi crude oil to Asia had to change course in the Red Sea.
The disruption in energy shipments increased oil prices and inflation concerns, causing investors to turn to gold, seen as a safe haven.
EYES ON FED'S INTEREST RATE DECISION
Markets are now focused on the Fed's interest rate decision to be announced next week. Although most economists surveyed by Reuters expect rates to remain unchanged, it is noted that the number of those who see a high probability of a rate hike within the year is increasing.
A high-interest rate environment is cited among factors that could reduce the appeal of gold, which offers no interest yield.
EXPERT ASSESSMENT
In his assessment after the recent rise, KCM Trade Chief Market Analyst Tim Waterer stated that investors saw the recent decline as a buying opportunity.
Waterer also expressed that expectations of diplomatic progress between the US and Iran supported price movements.
OTHER PRECIOUS METALS ALSO ROSE
The rise in gold was also reflected in other precious metals. Silver rose 1.9 percent to $59.87 per ounce, while platinum gained 2.4 percent to $1,667.22, and palladium increased 3 percent to $1,320.75.