Gold prices maintained gains supported by buying on dips, even as hostilities in the Middle East pushed oil prices to their highest in several weeks, reigniting fears that inflationary pressures in the US could push the Federal Reserve to raise interest rates.

Gold traded near $4,130 per ounce, after rising 3% in the previous two days, as buying on price dips supported the metal. This came as the US and Iran indicated they are not ready to return to the negotiating table after the escalation of attacks, while silver stabilized at $59.75 per ounce.

Reports also emerged of strikes targeting tankers crossing the Red Sea, the first such attacks since the conflict began in late February, which could lead to its expansion. The waterway represented a vital alternative route for Saudi crude bypassing the Strait of Hormuz. The Iran-backed Yemeni Houthi group claimed responsibility.

Thu, 23 2026

Traders are now weighing the impact of rising energy prices against weak US economic data, as they look for clues on the rate path. High borrowing costs are a headwind for gold, which yields no return. Traders are split on whether the Fed will raise rates next week, as the lack of forward guidance under new Chairman Kevin Warsh adds to uncertainty.

Gold had largely moved inversely to bond yields during the conflict, until it held above $4,000 this week, a level some traders see as support. The precious metal remains down 20% since the US launched strikes on Iran in late February, following a multi-year rally that pushed it to a record high of $5,600 the previous month.

Tue, 30 2026

Gold faces resistance near $4,200

Global Head of Commodity Strategy at TD Securities, Bart Melek, said: "Gold's recent rally was unusual, given the sharp rise in energy prices following rounds of escalation in the Middle East." He added: "This rally does not appear to represent a strong expansion in long positions, but rather is driven by short covering and buying on dips, after technical support levels held during the previous sell-off." He stated that the high interest rate environment suggests gold may be headed back toward the support level of $3,900, and that the metal may face imminent resistance at $4,200.