Overview
- Gold traded around the $3,990–$4,018 range and was heading for its largest weekly decline in weeks after a selloff driven by higher oil and stronger US rates expectations.
- Renewed US strikes on Iranian targets and threats to shipping through the Strait of Hormuz lifted Brent and WTI sharply, reviving inflation concerns that make central bankers more likely to keep policy tight.
- U.S. producer prices unexpectedly fell 0.3% in June, a sign of cooling wholesale inflation, but markets mostly discounted that print because higher oil and hawkish Fed comments boosted the dollar and Treasury yields.
- Domestic markets tracked global moves with adjustments for local duties and exchange rates: New Delhi wholesale rates slipped to about Rs 145,300–145,500 per 10 grams and Pakistan’s rates swung between Rs421,800–424,200 per tola this week.
- Analysts note technical support near $4,000 and see possible recovery to around $4,500 by Q3 if disinflation resumes, but they say the near term depends on further Middle East escalation, upcoming U.S. data, and more Fed speeches.