Gold was on course for its first weekly advance in three weeks on Friday, supported by renewed expectations that the Federal Reserve will cut interest rates later this year and by escalating geopolitical tensions in the Middle East. Spot gold was trading around $2,410 per ounce on the morning of 24 July 2026, up roughly 1.2 per cent for the week, after three consecutive weekly declines.
The rally gathered pace midweek after the Fed's latest policy minutes revealed that several members are leaning towards a rate cut in the autumn, citing a cooling labour market and easing inflation. A lower interest rate environment typically reduces the opportunity cost of holding non-yielding assets such as gold, and it also tends to weaken the US dollar, making bullion cheaper for overseas buyers.
Geopolitical risk has also provided a tailwind. Reports of fresh skirmishes along Israel's northern border and stalled ceasefire talks in Gaza have pushed investors towards safe-haven assets. Analysts at RBC Capital Markets noted that "the combination of macro uncertainty and geopolitical instability continues to provide a floor under gold prices, even as equity markets remain volatile."
For UK investors, the movement in gold prices carries direct implications for portfolios and pensions. Many British pension funds hold a small allocation to gold or gold-backed exchange-traded funds as a hedge against inflation and market turbulence. The recent uptick will be welcomed by those who increased their exposure during the precious metal's rally earlier this year, when it hit an all-time high above $2,450 per ounce in May 2026.
The FTSE 100, meanwhile, was trading flat on Friday morning, with mining stocks — including gold producers such as Fresnillo and Endeavour Mining — edging higher on the back of the stronger bullion price. The index stood at 8,215 points, down 0.1 per cent on the day, as gains in the mining sector offset weakness in consumer staples and financials.
Looking ahead, market participants are focused on next week's US jobs data and the Fed's Jackson Hole symposium, both of which could provide further clues on the timing and pace of rate cuts. For now, gold appears to have regained its footing, but analysts caution that a sudden de-escalation in the Middle East or a hawkish pivot from the Fed could quickly reverse the gains.