Concern for Ghana as Gold Heads for Biggest Loss in 6 Weeks as US-Iran Conflict Fuels Hike Fears
- Gold lost 3% over the week ending July 17, marking its steepest weekly decline since June 1 as US-Iran tensions dominated sentiment
- Rising oil prices, up roughly 12% on the week, stoked inflation fears and strengthened the case for US interest rate increases
- Traders priced in a 73% chance of a December rate hike, with two Federal Reserve officials publicly backing the possibility of tighter policy
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Gold was on course for its worst weekly performance in six weeks on Friday, July 17, as an escalating military conflict between the US and Iran drove oil prices sharply higher, adding to inflation concerns and increasing pressure on the US Federal Reserve to raise interest rates.
Spot gold recovered slightly, rising 0.6% to $3,993.22 per ounce by 0758 GMT, after touching its lowest level since July 1 earlier in the session. US gold futures for August delivery edged up 0.1% to $3,996.90.
Source: Getty Images
Despite the partial recovery, the metal had shed 3% across the week, its largest weekly decline since June 1.
This will be of concern to Ghana, which produced a record 6 million ounces of gold in 2025, according to provisional data, with large‑scale mines contributing 2.9 million ounces, unchanged from last year, an association of multinational and local mining companies told Reuters.
Tim Waterer, chief market analyst at KCM Trade, noted that the brief dip beneath the $4,000 threshold had drawn some opportunistic buyers back into the market.
However, Reuters reported that he cautioned that the broader picture remained unfavourable for gold, saying "geopolitical risks in the Middle East are still present, with inflation and yield concerns being the dominant forces holding gold back."
Crude oil climbed approximately 12% over the week as the US-Iran standoff raised fears about global supply disruptions.
Higher energy costs risk reigniting inflationary pressures that had shown signs of easing, following softer-than-expected US inflation figures for June released earlier in the week.
Because gold does not offer a yield, it typically loses appeal when interest rates rise, as investors shift towards assets that generate returns.
Other precious metals also came under pressure. Spot silver slipped 0.1% to $55.45 per ounce, platinum fell 1.9% to $1,586.63, and palladium dropped 1% to $1,237.47. All three metals were set to close the week in negative territory.
New gold royalty regime in Ghana
Ghana, like many other African countries, is raising mining royalties as governments seek to capture more revenue from their natural resources as commodity prices surge.
Early in March, Reuters reported that China, the US and other Western governments had mounted an unusually coordinated push to get Ghana to halt a gold royalty hike because of the negative effects on multinational mining companies.
Ghana wants to replace its fixed 5% royalty with a sliding scale between 5% and 12% linked to bullion prices.
This is part of an effort to capture more revenue from gold's run to successive historic highs, with gold prices currently selling at over $5,000 per ounce.
Source: YEN.com.gh
