Gold prices hit two-week highs in global markets

Gold prices in the international market have hit a two-week high. Investors are keen to see the broader Middle East conflict and the US Federal Reserve's interest rate decision next week, which has boosted gold prices.

Spot gold prices rose 1.3 percent to $4,129.43 an ounce as of 11:11 am Bangladesh time on Wednesday (July 22). Earlier in the day, gold reached its highest level since July 7. At the same time, US gold futures for August delivery rose 1.4 percent to $4,134.50 an ounce.

According to analysts, rising tensions in the Middle East have increased oil prices and inflation fears. As a result, expectations that interest rates may rise further have become strong. This is why the gold market suffered its biggest weekly decline since the beginning of June last week.

Tim Waterer, chief market analyst at KCM Trade, said investors are returning to the market as a chance to buy at a relatively low price after the recent decline. In addition, the possibility of diplomatic progress between the United States and Iran is also helping the rise in gold prices.

However, US Secretary of State Marco Rubio said that while Washington is still interested in discussing a diplomatic solution to the Iran crisis, Tehran is not sincere about it.

Meanwhile, three tankers carrying crude oil from Saudi Arabia to Asia changed their routes on Tuesday due to threats from the Iran-backed Houthis in Yemen in the Red Sea, raising fresh concerns about energy supplies.

According to a Reuters poll, the Federal Reserve is likely to keep its policy interest rate unchanged for the rest of 2026. However, most analysts now see the possibility of an interest rate increase this year as "high", which is a different picture from last month's survey.

Economists say that prolonged high interest rates increase the opportunity cost of holding gold as a non-interest-bearing asset, which has an impact on the gold market.

Meanwhile, other precious metals also rose. Spot silver rose 1.6 percent to $59.71 an ounce, its highest since July 10. Platinum rose 1.9 percent to $1,659.97 an ounce and palladium rose 2.2 percent to $1,310.50 an ounce.