Key Takeaways
- Gold prices reached a nearly two-week high due to technical buying.
- Investors await next week’s US Federal Reserve meeting for interest rate clues.
- Middle East conflict disrupted shipping through critical energy chokepoints.
Gold prices surged to a near two-week high on Wednesday, with spot gold rising 0.9% to $4,113.73 per ounce by 0123 GMT, marking its highest level since July 10. This increase was driven by technical buying and investor anticipation of the upcoming US Federal Reserve meeting.
The ongoing Middle East conflict also played a significant role in market dynamics, with two oil tankers carrying Saudi crude to Asia reversing course after threats from Yemen’s Iran-aligned Houthis. The disruption through critical energy chokepoints further contributed to market volatility.
In response to these developments, the US Federal Reserve is expected to keep its key interest rate steady for the remainder of 2026, according to median forecasts in a Reuters poll. This decision aims to address persistent inflation issues that have persisted for five years.
Canadian Prime Minister Mark Carney and U.S. President Donald Trump agreed to intensify trade negotiations following their Tuesday conversation, but Carney warned that he would consider all options if the tariffs threatened by Trump materialize.
The situation in the Middle East also affected other commodities, with oil prices climbing more than 1% and trading near their highest levels in six weeks. The conflict has disrupted shipping through critical energy routes, impacting global markets.
In a separate development, two senior Howden brokers provided evidence in a private London hearing related to a U.S. court case involving insurance claims from the Newmont Corporation’s Ahafo gold mine in Ghana.
Meanwhile, silver prices gained 1.8% to $59.82 per ounce, while platinum and palladium also saw increases of 1.6% each, reaching $1,655.61 and $1,302.25 respectively. These gains reflect the broader market sentiment influenced by geopolitical tensions.
Iran’s Interior Minister Eskandar Momeni visited Pakistan to seek continued diplomatic efforts in resolving regional conflicts. This visit highlights the ongoing importance of regional mediation in addressing international disputes.
