Gold Prices Rise on Pause in Middle East Fighting

Gold prices rose on July 27 as a pause in Middle East fighting eased oil supply risks and inflationary concerns. The US halted its strikes against Iran without explanation, while Tehran signalled it was refraining from retaliatory attacks.

Bullion climbed as much as 1.1% to near $4,100 an ounce, having gained nearly 1% in the previous week. Oil prices tumbled at the start of trading, with Brent falling over 7% to below $90 a barrel before paring losses.

The pause in fighting had stoked inflationary pressures and increased the likelihood that the Federal Reserve may raise interest rates, creating headwinds for non-yielding bullion. Spot gold climbed 1% to $4,094.03 an ounce, while silver jumped 2.7% to $59.72 an ounce.