Gold rises on falling oil prices, weaker dollar ahead of fed

July 27, 2026 (MLN): Gold prices advanced more than 1% on Monday after easing tensions between the United States and Iran pushed oil prices and the U.S. dollar lower, improving demand for the safe-haven metal ahead of this week's Federal Reserve policy meeting.

Currently, spot gold is up 0.97% to $4,090.77 an ounce as of [09:33 am] PST, according to data reported by Mettis Global.

The rally came after reports that Iran is prepared to suspend military operations provided the United States also refrains from further strikes, easing concerns over a broader regional conflict.

The softer geopolitical outlook triggered a sharp decline in oil prices of more than 4%, reducing inflation expectations, according to CNBC.

A weaker U.S. dollar also supported bullion, with the dollar index falling 0.3%, making gold less expensive for buyers using other currencies.

Lower energy prices have eased fears of persistent inflation, shifting investor attention toward the Federal Reserve's interest rate decision.

While markets widely expect the central bank to leave rates unchanged, traders continue to assess the likelihood of a policy tightening later this year.

Gold, which typically benefits from heightened uncertainty, had faced pressure in recent months as rising oil prices fueled expectations that central banks could keep interest rates elevated for longer.

Higher interest rates generally reduce the appeal of non-yielding assets such as gold.

Despite near-term volatility driven by geopolitical developments and movements in oil prices, the broader outlook for gold remains supported by ongoing uncertainty and expectations surrounding global monetary policy.

Copyright Mettis Link News