Gold is struggling to hold above $4,000 an ounce as U.S. strikes on Iran enter a fifth day and fresh U.S. retail sales data keep the door open to higher interest rates. Spot gold last traded at $4,001.40 an ounce, down 1.43% on the day.
Gold is fighting to stay above the $4,000 mark, caught between a widening U.S.-Iran conflict and economic data that points toward tighter Federal Reserve policy. Gold's August futures opened at $4,068.90 per troy ounce on Thursday, July 16, 2026, up 0.4% from Wednesday's close, then drifted lower to $4,041.10 by 8:02 a.m. ET.
Retail sales point the Fed toward rate hikes
Consumer spending gave the metal little support. U.S. retail sales rose 0.2% in June, following May's revised 1.0% increase, the U.S. Commerce Department reported Thursday, matching economists' expectations. Over the past 12 months, retail sales increased 6.7%.
The picture beneath the headline was softer. Core retail sales, which strip out vehicle sales, fell 0.2% last month, coming in weaker than the unchanged reading economists had forecast. Even so, according to economists, although the report presented a somewhat mixed picture, it still suggests consumers are holding up reasonably well despite the challenging inflationary environment, which could let the Fed keep its focus on price stability and pave the way for interest rate hikes by the end of the year.
Iran conflict adds a competing pull
Working the other way, geopolitics kept a floor under the metal. Gold held just above $4,000 as the U.S. continued to strike Iranian military sites for a fifth straight day, according to Yahoo Finance. The exchanges have again closed the Strait of Hormuz and brought a U.S. naval blockade on Iranian ports.
Yet the same tensions may cut against gold over time. The renewed fighting has pressured energy prices worldwide, prompting analysts to bet on higher interest rates at some point this year — a natural headwind for gold, which pays no interest. For now the two forces leave spot gold at $4,001.40, down 1.43% on the day.
Sources: Yahoo Finance, Kitco News
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