US gold futures for August delivery shed 1.97% to $4,074.80/oz.
Gold prices fell more than 1 per cent on Wednesday after US President Donald Trump said an interim peace deal with Iran was “over”, sending oil prices higher and stoking fears of inflation and higher US interest rates.Spot gold fell 1.02 per cent to $4,063.67 per ounce by 0850 GMT, after dropping to its lowest since July 2 earlier in the session. US gold futures for August delivery shed 1.97 per cent to $4,074.80/oz. Trump said that the memorandum of understanding signed with Iran to end their four-month conflict in June was “over”, adding he didn’t want to engage with Tehran. Oil prices gained more than 5 per cent after his comments.Earlier, Iran’s Revolutionary Guards said they targeted US military bases in Bahrain and Kuwait following US strikes on Iran and the revocation of a license to allow the country to sell oil.While gold is traditionally considered a safe haven, higher energy prices due to the war have raised concerns of inflation and higher interest rates, which would weigh on the non-yielding metal.Fed’s minutes, due at 1800 GMT, will be closely watched for clues on the future trajectory of interest rates.“Gold is likely to stay in a consolidation mode in the short term. We need to have further weakening of US jobs data and lower US inflation figures allowing Fed officials to sound less hawkish in respect to policy decisions, to see gold prices moving higher,” said UBS analyst Giovanni Staunovo.Markets currently expect a 66 per cent chance for a US rate hike in September, compared to 62 per cent on Tuesday, the CME FedWatch tool showed. Meanwhile, China’s central bank on Tuesday reported its biggest monthly increase in gold reserves in more than two and a half years in June.Among other metals, spot silver fell 2.37 per cent to $58.59 per ounce, platinum slipped nearly 3 per cent to $1,591.88, and palladium dropped 3.9 per cent to $1,227.18.Published on July 8, 2026
