July 21, 2026
Gold prices and silver edged lower at the start of the week as investors weighed renewed geopolitical tensions against rising inflation concerns. Higher oil prices, stronger U.S. Treasury yields and a firmer U.S. dollar pressured precious metals, even as risks surrounding the Strait of Hormuz continued to support demand for safe-haven assets.
Gold Faces Headwinds Despite Geopolitical Uncertainty
Spot gold traded at around US$4,008 per ounce, slipping modestly from the previous session. Silver proved somewhat more resilient but was also unable to escape the broader market weakness.
The current market environment reflects two opposing forces. On one hand, ongoing tensions in the Middle East and concerns over shipping through the Strait of Hormuz continue to underpin safe-haven demand. On the other, higher oil prices are fueling inflation expectations, reinforcing the view that the U.S. Federal Reserve may keep interest rates elevated for longer.
Oil markets remained supported by concerns over potential disruptions to energy shipments through the Strait of Hormuz. Brent crude traded above US$73 per barrel, while WTI hovered near US$70 per barrel. At the same time, yields on the 10-year U.S. Treasury climbed to around 4.5%, accompanied by further strength in the U.S. dollar—a combination that traditionally weighs on non-yielding assets such as gold.
Gold Remains in a Technical Consolidation
From a technical perspective, gold continues to trade within a consolidation pattern. Initial resistance is seen between US$4,200 and US$4,260 per ounce. A sustained move above this zone could open the way toward US$4,350, followed by US$4,500. On the downside, initial support lies near US$4,091, with additional support levels around US$4,000 and US$3,959.
Silver is also consolidating. A decisive break above the US$61.33 to US$62.81 range would improve the technical outlook and could pave the way toward US$64–65. Key support levels are currently identified at US$60.69, US$59, and US$58.
For now, the gold price remains caught between competing market drivers. Geopolitical uncertainty continues to generate safe-haven demand, while rising energy prices, higher bond yields and expectations of a prolonged restrictive monetary policy continue to limit the upside for precious metals.
