Gold retreats amid rising yields; Monetary Policy in focus

23 July 2026

Market comment on behalf of Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A

Gold prices fell on Thursday as a broad rise in global bond yields weighed on the precious metal. Yields climbed as oil prices continued to rise amid mounting tensions in the Middle East and new threats to energy flows in the Red Sea. The increase in crude prices fuelled concerns about global inflationary pressures and reinforced expectations of a more restrictive monetary policy. Markets now price two interest rate increases from the Federal Reserve by year-end. In Japan, expectations of tighter policy from the Bank of Japan have also grown.

Against this backdrop, gold remains exposed ahead of a busy calendar of central bank decisions. The ECB sets rates today, followed next week by the Federal Reserve, the Bank of England and the Bank of Japan. Market participants will look for any clue about the path of monetary policy for the rest of the year. Expectations of a hawkish tilt are keeping yields elevated and limiting gold’s appeal.

Looking ahead, markets will also closely monitor geopolitical developments. Heightened tensions are likely to keep bullion under selling pressure, while any progress toward peace talks could benefit the precious metal if inflation concerns abate. Nevertheless, gold continues to draw structural support from sustained central bank purchases, helping limit downside risks.

 

Zaid Barem / ymm