Gold Rebounds Weekly on Dip-Buying as Fed Meeting Looms

Gold turned positive Friday (24th) after earlier declines, as hopes for U.S.-Iran peace talks drove Brent crude oil prices down from $100 per barrel, temporarily easing inflation and rate hike concerns and lifting non-yielding gold. Ahead of the Federal Reserve's (Fed) policy meeting next week, investors continue to assess interest rate outlook and gauge inflation implications from Middle East conflict developments.

Spot gold rose 0.1% to $4,052.78 per ounce, after falling around 2% earlier in the session.

August-delivery gold futures closed down 0.5% at $4,070.80 per ounce.

Gold gained 0.9% for the week.

Tai Wong, independent metals trader, said: "Despite high yields, gold and silver found support around $3,950–$3,955. While stop-loss triggers can't be ruled out if the conflict escalates, the Fed's likely pause next week remains supportive for precious metals."

Brent crude surged over 7% and briefly topped $100 per barrel—the first time since May—after Iran-backed Houthi militants attacked two Saudi oil tankers in the Red Sea. However, prices reversed Friday, falling over 4%. Reports indicate China is pushing to restart stalled U.S.-Iran peace talks.

Since the U.S.-Israel and Iran conflict escalated in late February, gold prices have dropped about 23% amid fears of war-driven inflation and persistently high interest rates. Although gold is seen as an inflation hedge, its appeal diminishes in high-rate environments due to its lack of yield.

Investors await the Fed's upcoming rate decision, with markets widely expecting a hold.

CME's FedWatch tool shows traders pricing in an approximately 82% chance of a rate hike in September.

ING analysts noted: "Dip-buying and short-covering appear to have driven gold's recent strength. Prior to this, gold underwent a sharp correction from its earlier highs this year... Future recovery may be constrained by high oil prices and yields, making $4,000 a key near-term level to watch."

Other precious metals:

Spot silver rose 0.8% to $58.11 per ounce.

Spot platinum fell 0.8% to $1,587.17 per ounce.

Spot palladium dropped 1.4% to $1,239.20 per ounce.