Gold is advancing despite a fresh escalation of tensions in the Middle East, in a session where an exchange of attacks in the region pushed oil prices above levels recorded before the conflict began and fuelled investor concerns over a more restrictive monetary policy.
The yellow metal was up 0.32% at $4,118.50 per ounce in morning trading, recovering part of the losses from the previous session, when gold retreated 1.4%.
A higher inflation scenario that forces central banks to raise benchmark interest rates tends to weigh on the precious metal, given that it offers no yield in the form of interest.
“Everything that matters to the gold and silver markets right now is whether the US Federal Reserve will raise interest rates or not,” said Carsten Menke, Head of Research at Julius Baer Group, in a note seen by Bloomberg.
“We do not expect the Fed to raise rates, as part of the inflationary pressure should prove temporary,” he added.
Against a backdrop of uncertainty generated by the conflict’s escalation, investors are awaiting the release of the minutes from the Federal Reserve’s most recent meeting, scheduled for Wednesday, 8 July, later in the day. On that occasion, despite the Fed having held interest rates unchanged, gold sold off after Kevin Warsh, the central bank’s chairman, adopted a more hawkish stance — favouring a tightening of monetary policy — than markets had anticipated.
Since the conflict in the Middle East began escalating in late February, gold has shed more than 20% of its value. Investors have been using the strong appreciation recorded over the previous three years to book profits and offset losses in other assets, a dynamic that ultimately pushed the precious metal into bear market territory last month.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/08/mercados/commodities/ouro-resiste-a-aumento-das-tensoes-no-medio-oriente-e-consegue-avancar/
