World gold prices in the afternoon trading session of July 20 almost moved sideways around the 4,000 USD/ounce mark, as the market continued to monitor the developments of conflicts in the Middle East and the monetary policy outlook of the US Federal Reserve (Fed).
As of 3:30 PM Vietnam time, spot gold prices increased slightly by 0.2% to 4,020.92 USD/ounce after recording the strongest weekly decline in six weeks. Meanwhile, August gold futures fell 1.83% to 4,025.80 USD/ounce.
At the same time, Brent oil prices rose 0.23% to $88.23 a barrel as attacks between the US and Iran continued to escalate, raising concerns about the risk of disruption of oil transportation through the Strait of Hormuz.
Prolonged conflict also caused energy prices and many commodities to increase again. In that context, the market continues to monitor the possibility that inflationary pressure may increase if oil prices remain high.
This development takes place as expectations for the Fed's monetary policy also change. The market is currently assessing the possibility that the Fed will have at least one more interest rate hike before the end of the year. Along with that, more and more Fed officials express concern about inflationary pressure and believe that interest rates may need to be further adjusted if inflation has not improved significantly.
Meanwhile, gold prices are still fluctuating in the range of around 4,000 USD/ounce. Although it has fallen below this level many times in recent sessions, the price has quickly returned to the trading range above 4,000 USD/ounce.
Along with the developments of gold, the USD continued to maintain in a high zone, while oil prices increased sharply after new developments in the Middle East. These factors continue to be the focus of market monitoring in the new trading week.
