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Gold rises to a two-week high as dollar softens and Fed outlooks shift
Spot gold climbed 1.7% to $4,145.24 per ounce, after reaching its highest level since July 7 earlier in the session.
Gold advanced to a two-week high on Wednesday, supported by a softer U.S. dollar and technical buying as investors weighed lingering Middle East tensions and looked ahead to fresh interest rate signals from the U.S. Federal Reserve, Reuters reported. Spot gold was up 1.7% to $4,145.24 per ounce by 1:35 p.m. EDT, after earlier hitting $4,165.87 per ounce, its highest since July 7.
U.S. gold futures for August settled 1.9% higher at $4,151.90, according to Reuters. Lukman Otunuga, senior research analyst at FXTM, said gold moved sharply higher above $4,140 as a weaker dollar and dip buyers added support, though he noted bearish fundamentals could limit further upside, with oil prices rising more than 3% that morning.
The report also pointed to the effect of higher oil prices tied to Gulf supply disruptions, which have raised expectations of “higher-for-longer” interest rates that typically weigh on non-yielding bullion. It added that a Reuters Poll indicated the Fed is likely to keep its key rate steady for the rest of 2026, while markets see two rate hikes by the end of March next year, with investors now focusing on the upcoming FOMC meeting.
Elsewhere in precious metals, Reuters said spot silver rose 2.0% to $59.98 per ounce, platinum gained 0.7% to $1,640.63, and palladium edged up 1.4% to $1,299.47. The move came as geopolitical developments included reports that four tankers carrying Saudi crude for Asia reversed course in the Red Sea after threats from Yemen's Iran-aligned Houthis.
Latest closeGold $4,117.00 ▲1.1%|Silver $59.51 ▲1.1%|Platinum $1,664.60 ▲2.4%