Middle East Tensions Shake Markets: Gold Prices on Path to New Records

Gold Returns to Upward Trajectory in July 2026

Today, July 2, 2026, the global gold market is witnessing a strong return of buyers. After a period of intense volatility in the first half of the year, the price of gold per ounce in global markets has reached approximately $4,075 [3]. This price jump occurs while gold had recorded a historic high of $5,598 in January 2026, but had lost part of its value in recent months under the influence of rising interest rates and a strengthening dollar [2]. Now, with renewed security concerns in the Middle East region, investors are once again flocking to this safe asset.

Shadow of War over the Strait of Hormuz and Energy Security

The continuation of conflicts between the United States, Israel, and Iran, which intensified since late February 2026, is the main factor behind the turbulence in financial markets [4]. Reports indicate that the situation in the Strait of Hormuz remains unstable, causing Brent oil prices to climb as high as $114 in recent months [2]. Although indirect diplomatic efforts are underway to fully reopen shipping routes, the lack of a final agreement between Tehran and Washington over the Hormuz regulatory framework has reduced risk appetite in global markets and strengthened demand for gold as an inflation hedge [5].

Federal Reserve Policy Shift and the Role of Kevin Warsh

In addition to geopolitical factors, recent remarks by Kevin Warsh, the new Chair of the Federal Reserve, have had a significant impact on gold's upward trend. In his latest statements at the European Central Bank forum, Warsh adopted a less hawkish tone regarding interest rate hikes [5]. This unexpected shift in stance eased concerns about another rate hike in July and lowered the opportunity cost of holding gold for investors. Analysts believe the Federal Reserve's focus has shifted from an aggressive fight against inflation toward maintaining market stability, which directly benefits precious metals [3].

Turkish Domestic Market Status and Gold Gram Price

In the Turkish domestic market, the reflection of regional tensions is clearly seen in prices. According to a report by Haber61, the price of a gram of gold in Turkey is moving toward its previous records again, influenced simultaneously by the increase in global ounce prices and fluctuations in the Lira exchange rate [1]. Currently, the price per gram of gold is trading at around 5,970 Lira in the free market, indicating a return of confidence to the gold market after the declines in June [4]. Experts warn that until lasting peace is established in the Middle East and there is clarity in the monetary policies of major central banks, gold's upward volatility will continue.