Gold reclaims ground this morning, with the DG spot price gaining over $30 an ounce, as oil prices ebb. Brent Oil futures pulled back, after topping $100 a barrel for the first time since May, and is now at $97 a barrel after President Trump discussed another ceasefire in Iran.
The higher fuel prices have driven concerns about rising inflation requiring a rate hike to get under control. Gold has fallen since the start of the U.S.-Israel war against Iran, which has spurred oil prices, but the yellow metal held on technical support at $4,000 an ounce in the past few days.
August gold futures slid 2.5% Thursday to settle at $4,050.20 an ounce on Comex, though the front-month contract gained 0.8% in the first four days of the week. Bullion is up 0.3% in July after sliding 12% in June and dropping 0.8% in May. It decreased 7% in the first half of 2026 after rallying 64% last year. The August contract has currently ticked up $3.70 (+0.09%) an ounce to $4053.90 and the DG spot price is $4057.40.
In physical news, China’s gold imports surged to a two-year high in June as the world’s largest gold-consuming country took advantage of the recent drop in prices, Bloomberg reported. It was the third monthly increase in buying.
Over 64% of investors don’t expect an interest rate increase at the Fed’s next scheduled monetary policy announcement on July 29, but an increasing number tracked by the CME FedWatch Tool – now at over 80% – are betting on a rate hike in September. The Fed has kept interest rates unchanged this year after three previous rate cuts. The Fed last month held interest rates steady at 3.5% to 3.75% but signaled growing support for a rate hike in 2026.
The Fed’s favorite inflation measure, the personal consumption expenditures price index, comes out next week, the day after the Fed’s announcement.
Meanwhile, the U.S. completed a 13th consecutive wave of strikes on Iran early Friday amid reports that Iranian officials had rejected a U.S. ceasefire proposal, likely signaling that an end to the conflict won’t come soon. The fighting has closed the Strait of Hormuz, a key artery for global energy markets.
Front-month silver futures dropped 3.7% Thursday to settle at $58.05 an ounce on Comex, though the September contract increased 3.1% so far this week. The most-active contract touched a record above $115 in January. Silver is down 3.1% in July after declining 21% in June and gaining 2.5% in May. It lost 15% in the first half of 2026 after rising 141% last year. The September contract is currently up $0.286 (+0.49%) an ounce to $58.340 and the DG spot price is $58.28.
Spot palladium fell 3.2% Thursday to $1,264.50 an ounce but has advanced 0.3% this week. Palladium is up 3.8% this month after dropping 11% in June and losing 12% in May. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is down $7.30 an ounce to $1261.00.
Spot platinum declined 2.8% Thursday to $1,602.30 an ounce and is down 0.6% so far this week. Platinum is up 2.8% this month after tumbling 19% in June and dropping 3.2% in May. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently down $15.80 an ounce to $1590.70.
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