Gold Prices Fall Below $4,000 Amid Fed, Geopolitical Uncertainty
Gold | 2026-07-21 08:09:53
Analysts also noted that open interest in COMEX gold futures has fallen sharply since mid-January, reaching levels last seen in 2009.
By Paul Ploumis
SEATTLE (Scrap Monster): Gold prices extended their losses for a second straight week, falling below the key $4,000 per ounce mark as investors reacted to changing expectations for U.S. interest rates and rising geopolitical tensions. Although U.S. inflation came in lower than expected, markets continued to remain due to ongoing U.S.-Iran conflicts and an anticipated hawkish stance by the U.S. Fed.
The LBMA Gold Price PM declined 2.5% over the week to $3,995 per ounce, taking the yellow metal's year-to-date loss to 8.5%. Investor sentiment also weakened, with global gold exchange-traded funds (ETFs) recording net outflows.
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Analysts also noted that open interest in COMEX gold futures has fallen sharply since mid-January, reaching levels last seen in 2009. This suggests that speculative trading activity has reduced significantly after gold retreated below its 200-day moving average.
Looking ahead, developments in the U.S.-Iran conflict are expected to remain the biggest driver for gold prices. A de-escalation could ease inflation concerns and support gold through lower interest-rate expectations.
From a technical perspective, analysts see $3,857-$3,887 per ounce as an important support zone, while resistance is expected around $4,067, followed by $4,203 if prices recover. In the event of continued weakness leading to a fall below US$3,857/oz, the next major support is at around US$3,500/oz.
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What is likely to have the biggest impact on gold prices in the near term?
Frequently Asked Questions
- Why did gold prices fall below $4,000 per ounce?
Gold prices declined due to shifting expectations for U.S. interest rates, weaker investor sentiment, ETF outflows, and uncertainty surrounding geopolitical tensions.
- How much did the LBMA Gold Price PM decline during the week?
The LBMA Gold Price PM fell 2.5% to $3,995 per ounce, bringing its year-to-date decline to 8.5%.
- What does the decline in COMEX gold futures open interest indicate?
It suggests that speculative trading activity has weakened significantly, with open interest dropping to levels last seen in 2009.
