Low-Cost Buying Boosts Gold Prices
Newsmaker.id - Gold prices moved up slightly in Asian trading on Friday, July 17, 2026, after experiencing a sharp decline in the previous session. Spot gold prices rose around 0.4% to around US$3,985 per troy ounce, but remained below the psychological level of US$4,000.
Gold's rise was driven by low-cost buying after the precious metal plunged around 2% and hit its lowest level in more than two weeks. Lower-than-expected US consumer and producer inflation data also provided support, alleviating some concerns about the Fed's policy tightening.
However, gold's gains remained limited due to the strengthening of US government bond yields and the dollar. The 10-year US Treasury yield is around 4.568%, while the two-year yield reached 4.155%. This situation reduces gold's appeal because precious metals do not provide the same yield as bonds.
The market is also still monitoring the surge in oil prices due to escalating tensions between the United States and Iran. Higher oil prices have the potential to increase inflation again and open the door to the Fed maintaining or raising interest rates. However, central bank gold purchases are expected to remain a long-term price support.
Market Impact:
Gold's rebound indicates buying interest as prices dipped near the US$3,980 area. However, as long as prices remain above US$4,000, gains remain limited. A strengthening dollar, rising yields, and oil prices remain the main obstacles, while a weaker dollar or easing inflation concerns could open up room for further gold recovery. (CP)
