Gold slips on oil-driven inflation worries

July 15, 2026 (MLN): Gold prices declined on Wednesday, giving up part of the previous session's sharp rally, as rising oil prices stoked inflation concerns and uncertainty over the US interest-rate path weighed on the non-yielding metal.

Currently, spot gold is recovered a bit to $4,031.91 an ounce as of [09:38 am] PST, according to data reported by Mettis Global.

The metal had jumped more than 2% to as high as $4,100.49 per ounce on Tuesday, rebounding from a two-week low after data showed US consumer inflation slowed more than expected in June on the back of retreating energy prices, according to CNBC.

Oil prices extended gains into a third straight session after US President Donald Trump reimposed a naval blockade on all Iranian ports and threatened to target power plants and bridges next week unless Tehran returns to negotiations, marking a further escalation in the conflict.

Elevated crude prices tend to stoke inflation concerns and expectations of higher-for-longer interest rates, denting the appeal of gold, which typically serves as an inflation hedge but loses its shine as a non-yielding asset when rates stay elevated.

According to CME FedWatch Tool data, traders now see roughly a 58% chance of a rate move at the Fed's September meeting, down from 76% before the inflation report, while pricing in an around 80% chance of a similar move in December.

Among other precious metals, spot silver lost 0.3% to $58.48 per ounce, platinum gained 0.2% to $1,635.56, and palladium edged 0.2% higher to $1,307.11.

Copyright Mettis Link News