Metal

Morning Correction: Precious Metal Loses Its Shine

Asian trading on Thursday 23.07.2026 began with an unexpected but understandable cooling in the precious metals market. August gold futures on COMEX, a division of the New York Mercantile Exchange, fell to $4,123.97 per troy ounce, losing 0.67% during the session. The decline may appear insignificant, but in a world where every cent matters and investors are desperately searching for safe havens, even such a correction raises questions.

Why has gold—a traditional defensive asset that usually appreciates during periods of instability—suddenly moved lower? As is often the case, the answer lies on the surface but requires careful consideration. The U.S. Dollar Index, which measures the American currency against a basket of six major currencies, declined by 0.14% to 100.82. Such a modest weakening of the dollar should theoretically have supported gold, since commodity prices denominated in dollars generally rise when the currency loses value. Today, however, that mechanism failed to work.

At the time of writing, gold had found support at $3,963.00, while resistance awaited at $4,171.09. A range of almost $200 represents more than just technical levels—it reflects the profound uncertainty currently dominating the markets. Investors do not know where the price will move next and prefer to lock in profits rather than take risks at a time when geopolitics and macroeconomics have become tightly intertwined.

The precious metals market is also showing an interesting divergence. September XAGUSD ... silver futures declined by 0.68% to $59.89 per ounce, following the same trajectory as gold. Copper, by contrast, gained 0.41% to reach $6.52 per pound. This divergence suggests that investors see different prospects for different metals: gold and silver are viewed as defensive assets, while copper is regarded as an indicator of industrial demand and economic growth.

The Dollar and Geopolitics: Which Will Prevail?

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Introduction: A Debut That Sent the Red Metal Tumbling

Imagine this: you have just taken office as the head of the world’s most powerful central bank. You step up to your first press conference, deliver a few remarks about your commitment to fighting inflation—and within hours, global copper prices fall by 1%, wiping out all the optimism that had fueled markets at the start of the week.

Welcome to the reality facing Kevin Warsh, the new Chair of the Federal Reserve.

The irony is that just one day earlier, metal markets were celebrating. A peace agreement between the United States and Iran promised lower geopolitical risks and greater stability in energy markets. Industrial metals—including copper, aluminum, and zinc—were rising, and investors were already positioning for a continued rally.

Then one press conference in Washington changed everything.

Copper on the London Metal Exchange fell to $13,694.50 per metric ton. Aluminum lost 0.5%, while zinc dropped 0.4%. Iron ore futures in Singapore touched their lowest level since March at $98.80 per ton before recovering slightly to $99.15.

All because of the words Warsh spoke on his very first day in office.

What exactly did the new Fed Chair say that prompted metal markets to react faster than policymakers could blink? And why did copper—often called the “doctor of the economy” because of its sensitivity to economic cycles—find itself at the center of the storm?

Let’s take a closer look.

Kevin Warsh: A New Face for an Old Policy

A Hawkish Debut Nobody Expected

Kevin Warsh did not arrive at the Fed as a newcomer. He previously served at the Federal Reserve during the 2008 financial crisis as a member of the Board of Governors before moving into the private sector.

Many viewed his appointment as the return of a veteran—someone who had...

Ten days. Ten long days that spot gold has been unable to break out of the range between $4,400 and $4,600 per ounce. For an asset accustomed to swinging hundreds of dollars in a single session, this is an agonizingly narrow corridor. Gold is stuck as if trapped in a vise, with neither bulls nor bears able to move it from dead center.

On Wednesday morning, spot prices edged up a symbolic 0.2% to $4,518. Futures added 0.3%, reaching $4,550. The move is so modest it almost feels embarrassing to call it a rally. Yet beneath this apparent stillness lies a fierce battle between two opposing forces, each pulling gold in its own direction. And the name of those forces is Iran.

Negotiations That Suffocate and Save at the Same Time

The main reason gold cannot decide on a direction is the stream of contradictory signals coming from the peace negotiations between the United States and Iran.

On Monday, U.S. forces struck targets in southern Iran. Gold, as expected, fell. Why did it fall instead of rise? Because the logic of the current conflict has turned traditional market relationships upside down.

Normally, war is fuel for gold. Investors flee risk, buy safe-haven assets, and the yellow metal rises. But this war is different. It has created an energy crisis that accelerated inflation. Inflation, in turn, has forced central banks to threaten higher interest rates. And the threat of higher rates is deadly poison for gold, which yields no interest income.

That is why the bombing of Iran is not pushing gold higher — it is dragging it lower instead. The market fears not the war itself, but its monetary consequences.

At the same time, however, negotiations continue. Diplomats remain at the table, discussing terms and exchanging draft agreements. Every headline...