Overview
- Renewed U.S. strikes on Iranian targets and reported airstrikes near the Strait of Hormuz lifted oil more than 3% and helped drive spot gold down about 1–1.5% to roughly $4,059 per ounce on Monday, July 13, 2026.
- The stronger dollar and higher Treasury yields reduced demand for non‑yielding assets, prompting selling in international bullion and sharp falls in local markets such as MCX gold futures near Rs 142,065 per 10 grams and Pakistan’s 24‑karat rate falling about Rs3,800 per tola.
- Traders and analysts say the moves reflect a trade-off: higher energy costs raise inflation risks that can support safe havens, but they also increase the chance the Federal Reserve keeps rates higher for longer, which weakens gold’s appeal.
- Market participants are focused on imminent U.S. data and testimony that could change the picture, especially the Consumer Price Index and Producer Price Index and Fed Chair Kevin Warsh’s congressional appearance.
- Analysts expect continued short‑term volatility with technical support near $4,000 and resistance around $4,200, and they warn a hotter CPI print or hawkish Fed signals would likely push gold lower while softer readings could allow a rebound.