Gold edged 0.63% higher to $4,027 per ounce as renewed US-Iran tensions and rising oil prices offset expectations of possible Federal Reserve rate hikes
Gold prices edged higher on Tuesday as investors balanced renewed tensions in the Middle East with uncertainty over the direction of U.S. interest rates, with the precious metal rising 0.63% to $4,027.15 per ounce.
The move came after President Donald Trump announced plans to reinstate a blockade on Iranian vessels passing through the Strait of Hormuz and seek reimbursement from countries benefiting from U.S. efforts to secure the strategic shipping route. The announcement pushed oil prices sharply higher and renewed concerns that rising energy costs could fuel inflation, potentially influencing the Federal Reserve’s interest-rate decisions.
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Gold typically benefits from periods of geopolitical uncertainty as investors seek safer assets. However, expectations of higher interest rates can limit gains because gold does not generate interest income and becomes less attractive compared with interest-bearing investments.
Investors are now awaiting key U.S. inflation data and Federal Reserve Chair Kevin Warsh’s testimony before Congress for further clues on the central bank’s policy outlook. Markets currently price in about a 51% chance of a Federal Reserve rate hike in September, compared with a 23% probability that policymakers will leave rates unchanged.
Despite Tuesday’s recovery, gold has fallen 6.56% over the past month as shifting expectations around monetary policy continue to influence prices. The precious metal, however, remains 21.11% higher than a year ago, showing its strong performance over the longer term.
According to a report by Accra Street Journal, the combination of geopolitical uncertainty and monetary policy expectations is likely to keep gold trading in a tight range in the near term, with investors closely watching both Middle East developments and signals from the Federal Reserve.
Source: Accra Street Journal
Last Updated on July 15, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
