Jakarta, CNBC Indonesia \u2013 Gold prices surged again amid hopes of a\ndiplomatic breakthrough between the United States and Iran.<\/p>\n
Such a breakthrough could potentially cool the spike in energy prices\nand reduce expectations that the Federal Reserve (the Fed) will maintain\nan aggressive (hawkish) monetary policy stance.<\/p>\n
According to Refinitiv, gold closed at US$4,076.29 per troy ounce in\nTuesday\u2019s trading (21\/7\/2026), soaring 1.76%.<\/p>\n
The rise was welcome news after prices eased 0.27% on Monday. The\nclosing price was also the highest since 10 July 2026.<\/p>\n
On Wednesday (22\/7\/2026) at 06.29 WIB, gold strengthened 0.13% to\nUS$4,081.38 per troy ounce.<\/p>\n
\u201cCommodities in general rose because the market is hoping that a\nceasefire in the Middle East is beginning to find some light at the end\nof the tunnel,\u201d said Marex analyst Edward Meir, quoted from\nRefinitiv.<\/p>\n
According to Meir, gold also received support from technical buying\nafter successfully breaking through the short-term downtrend that had\nbeen in place since 6 July.<\/p>\n
Nevertheless, he predicted that gold prices would continue to move\nwithin a limited range in the near term.<\/p>\n
A senior Iranian official said that Tehran had accepted a proposal\nfrom mediators for a 10-day ceasefire in an effort to salvage the\ninterim deal previously reached.<\/p>\n
Thus far, high oil prices resulting from supply disruptions in the\nGulf region have actually weighed on gold, as they trigger inflation\nconcerns and strengthen expectations that interest rates will remain\nhigher for longer.<\/p>\n
Although gold is known as a long-term hedge against inflation, high\ninterest rates increase the opportunity cost of holding assets that\ngenerate no yield, such as gold.<\/p>\n
Investors are now awaiting the Federal Reserve\u2019s interest rate\ndecision and remarks from Fed Chairman Kevin Warsh following the two-day\nmonetary policy meeting next week.<\/p>\n
Based on the CME FedWatch Tool, market participants estimate a\nroughly 68% chance that the Fed will raise interest rates again in\nSeptember.<\/p>\n
In its notes, Commerzbank said the psychological level of US$4,000\nper troy ounce remained firmly intact as a support area for gold prices.\nHowever, concerns over the direction of US interest rates are expected\nto limit any larger recovery in gold prices.<\/p>\n
Gold Rises Despite Rising Dollar, US Treasury Yields and Oil\nPrices<\/p>\n
The rise in gold prices was particularly striking because it occurred\namid a jump in the dollar index and US Treasury yields.<\/p>\n
The dollar index climbed to 101.173 in yesterday\u2019s trading, its\nhighest level since 1 July 2026. Meanwhile, US Treasury yields surged to\n4.628%, their highest level since 19 May 2026.<\/p>\n
Gold prices usually plummet as soon as the dollar index and US\nTreasury yields rise. This is because gold purchases are converted into\nUS dollars, so a rise in the index makes gold more expensive for holders\nof other currencies.<\/p>\n
Gold also offers no yield, so rising US Treasury yields usually put\nimmediate pressure on gold prices.<\/p>\n
Gold prices also held higher even as oil prices climbed back up to\nUS$91.01 per barrel, their highest level since 10 June 2026. Since the\nwar began, gold has been highly sensitive to oil price movements.<\/p>\n
Rising oil prices usually send gold falling immediately, as higher\noil prices can fuel inflation and threaten interest rate hikes.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/gold-prices-surge-despite-triple-threat-from-strong-dollar-rising-yields-and-oil-1784681449", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }