Gold Soars to Best Week Since January as Oil Prices Fall

The gold market has seen its best week since January 2026, with spot gold prices reaching $4,254.11 per ounce and gold futures hitting $4,312.00.

This significant move was driven by the convergence of three key factors: falling crude oil prices, shifting Federal Reserve rate hike probabilities, and geopolitical developments in the Middle East.

The decline in oil prices reduced inflation expectations, which in turn decreased the urgency for central banks to maintain aggressive tightening postures. This change in sentiment made gold more attractive as a store of value and portfolio diversifier.

The CME FedWatch Tool indicated that the probability of a U.S. Federal Reserve rate hike in September dropped from 63% to 55%, further contributing to the gold rally.