Gold slumps to $4,027 as oil rally revives inflation fears

July 24, 2026 (MLN): Gold prices extended their previous session's slide on Friday, easing further after a 2% drop, as Brent crude's rebound above $100 a barrel fanned inflation worries and bolstered expectations of higher interest rates ahead of next week's Federal Reserve policy meeting.

Currently, spot gold is down 2.58% to $4,027.26 an ounce as of [9:40 am] PST, according to data reported by Mettis Global.

The renewed pressure on bullion followed US President Donald Trump's warning on Thursday of "major military punishment" against Iran and its Houthi allies, after Yemeni fighters struck two Saudi oil tankers in the Red Sea.

The escalation pushed crude prices higher, reviving concerns over inflation and a longer stretch of elevated interest rates a backdrop that typically dulls gold's appeal as a non-yielding asset, even though it is traditionally viewed as an inflation hedge, according to Reuters.

Investor attention is now turning to the Fed's upoming meeting, where policymakers are widely expected to leave rates unchanged.

However, traders are pricing in an 81% probability of a rate hike in September, according to the CME FedWatch Tool.

Among other precious metals, spot silver dipped 0.7% to $57.29 per ounce, Platinum declined 1.3% to $1,579.49.

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