Live Updates > Live Update Details
2026-07-16 15:20:13
[Middle East Conflict Fuels Inflation Fears, Gold Prices Fall] 1. Gold prices edged lower in Asian trading on Thursday, with spot gold down 0.88% to $4,024.5 per ounce. The escalating tensions in the Middle East reignited market concerns about inflation and interest rate prospects, waning optimism following cooling US inflation data. 2. Analysts pointed out that June's inflation data failed to reflect the impact of the latest escalation in the US-Iran conflict—the interim peace agreement reached last month has effectively collapsed, adding uncertainty to future price movements. 3. Oil prices have risen more than 11% so far this week, reigniting market concerns about higher and longer-lasting inflation and interest rates. While gold is traditionally seen as an inflation hedge, its appeal as a non-interest-bearing asset is often diminished in a high-interest-rate environment. 4. The CME Group's FedWatch tool shows that the market expects a 73% probability of a Fed rate hike in December, up from about 70% last week, although lower than Monday's 90%. 5. The market is closely watching speeches later today from Dallas Fed President Logan and Fed Vice Chairman Jefferson for further clues about the path of monetary policy. Meanwhile, further escalation of the situation in the Middle East remains a significant variable for short-term gold price movements. Additionally, today's trading session will also see the release of US initial jobless claims and the US June retail sales figures.
