Gold Heads for Biggest Weekly Loss Since Early June

Friday, July 17, 2026 12:32 PM | 1 minute read

Gold is heading for its biggest weekly loss since early June, after renewed hostilities in the Middle East increased the likelihood that the US Federal Reserve may need to raise interest rates to contain inflation.

The precious metal rose slightly on Friday, approaching $3,980 an ounce, but is down 3.5% for the week so far. The US launched its fifth consecutive day of attacks on Iran on Thursday, following overnight strikes that hit an oil tanker near Iran's main export terminal.

The conflict, now in its fifth month, has driven up energy prices and fueled inflation risks. A growing number of Federal Reserve officials are expressing concern about rising inflation and warning that the central bank may soon need to raise interest rates, creating headwinds for gold, which yields no interest.

Tue, 14 2026

"Friday's slight rebound may reflect bargain buying, but it's too early to talk about a market turnaround," said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. "Gold's rise requires further declines in oil prices and a retreat from hawkish rhetoric."

Gold has hovered in a tight range near $4,000 an ounce in recent weeks, after losing 14% in the second quarter, its worst performance since 2013.

Spot gold rose 0.2% to $3,982.52 an ounce at 10 a.m. in Singapore, after falling 2% in the previous session. Silver fell 0.4% to $55.31 an ounce.

Platinum and palladium fell 0.6% and 0.1%, respectively. The Bloomberg Dollar Spot Index, a gauge of the US currency, was steady.

Definitions