July 17, 2026 — Global gold prices are on course for their steepest weekly decline in six weeks as escalating military tensions between the United States and Iran drive oil prices sharply higher, stoking inflation fears and reinforcing expectations of higher US interest rates.
Spot gold rose 0.3% to $3,980.64 per ounce by 0455 GMT on Friday after earlier falling to its lowest level since July 1. Meanwhile, US gold futures for August delivery slipped 0.2% to $3,984.10 per ounce.
Despite Friday’s modest rebound, gold has fallen 3.4% this week, marking its largest weekly loss since June 1. Analysts say the worsening conflict in the Middle East has overshadowed the supportive impact of softer-than-expected US inflation data released earlier this week.
Tim Waterer, Chief Market Analyst at KCM Trade, said that while the latest Consumer Price Index (CPI) and Producer Price Index (PPI) figures suggested easing inflationary pressures, the sharp rise in oil prices has shifted market attention toward renewed inflation risks.
The market has largely overlooked the encouraging inflation data because soaring energy prices could reignite price pressures,” Waterer said. “Although geopolitical risks remain elevated, concerns over inflation and rising bond yields are currently exerting greater pressure on gold.
Other precious metals also declined. Spot silver fell 0.6% to $55.20 per ounce, platinum dropped 1.1% to $1,599.17, and palladium lost 0.4% to $1,244.16 per ounce. All three metals are also heading for weekly losses.
The latest market movements underscore how expectations of tighter US monetary policy, combined with energy-driven inflation concerns, are outweighing gold’s traditional appeal as a safe-haven asset during periods of geopolitical instability.
