The US-Iraq hostilities continued, and the increase in interest rates was expected to hit the price of gold. Soft

On 20 July, as the conflict between the United States and Iraq escalated over the weekend, the market might need to raise interest rates to contain inflation, and the price of the gold fell. Following a drop of more than 2 per cent last week, gold prices are now traded around $3,995 per ounce. The escalation of hostilities in the Middle East, including the attack on a key oil facility in Kuwait and the targeting of vessels attempting to pass through the Strait of Hormuz, led to a sharp rise in oil prices. Tehran, for its part, stated that the ceasefire agreement between the United States and the Islamic Republic of Iran had effectively been abolished, which had heightened concerns about the possibility of more severe disruptions to critical energy supplies through this narrow waterway. Kim Xian