Gold Rises, Buying Begins
Gold prices strengthened on Tuesday (July 21st), driven by dip-buying. Market participants are still monitoring developments in the Middle East conflict, particularly its impact on energy prices and global inflation.
Gold traded within a narrow range of around US$4,000 per troy ounce after closing down 0.2% in the previous session. Spot gold rose 0.7% to around US$4,033.88 per troy ounce, while silver also gained 1.9% to US$57.47 per troy ounce.
Geopolitical tensions remain a major concern. The United States has launched new attacks on Iranian targets, while President Donald Trump has asserted that Tehran will "pay" for the deaths of three US soldiers.
Risks have also increased after the Iran-backed Houthi group in Yemen threatened to block Saudi Arabia's maritime routes. However, Iran said mediators are still contacting Tehran with proposals to de-escalate the conflict, including a 10-day halt to attacks.
From a fundamental perspective, gold remains in a tug-of-war. The Middle East conflict provides safe haven support, but rising energy prices could trigger inflation and keep the Fed open to raising interest rates. This situation weighs on gold because the precious metal offers no yield.
As a result, the US$4,000 level remains a key psychological support area for gold. As long as this level holds, the opportunity for a rebound remains open. However, gold's gains could remain limited if oil prices rise again and expectations of the Fed's high interest rates remain unabated. (asd)*
Source: Newsmaker.id
