27.07.2026 08:00
The decline in oil prices due to easing tensions in the Middle East and a weaker dollar have driven gold prices higher. Ahead of the Fed's interest rate decision, spot gold rose above $4,100, while silver, platinum, and palladium also recorded strong gains. Experts indicate that gold will move in line with geopolitical developments and the trajectory of oil prices in the short term.
Gold prices surged sharply on the first trading day of the new week in global markets. The relative easing of tensions in the Middle East and the decline in oil prices led investors to turn back to gold, which is seen as a safe haven.
SPOT GOLD EXCEEDS $4,100
Spot gold rose 1.4% to $4,110.56 per ounce. US gold futures traded up 1% at $4,112.10. The weakening of the dollar index was also among the factors increasing demand for gold.
OIL DECLINE REDUCES INFLATION CONCERNS
Expectations that tensions between the US and Iran will decrease caused a loss of over 4% in oil prices during the day. The easing of global inflation pressure along with the decline in oil supported precious metals.
KCM Trade Chief Market Analyst Tim Waterer commented, "Gold is a clear winner today from the softening in both oil and the US dollar. The retreat in oil prices alleviates global inflation concerns, clearing the path for precious metals."
EYES ON THE FED'S INTEREST RATE DECISION
Markets are now focused on the US Federal Reserve's (Fed) interest rate decision. Analysts state that the messages to be given regarding the interest rate outlook will be decisive for the short-term direction of gold.
Waterer stated that he maintains his expectation of a rise in gold in the long term, saying, "Until a lasting peace is achieved, gold's trajectory will continue to be influenced by geopolitical developments."
SILVER AND PLATINUM ALSO ROSE
The rise in gold also reflected on other precious metals. Spot silver rose 2.8% to $59.81, platinum increased 2.6% to $1,629.15, and palladium gained 2.1% to $1,269.43.