Gold prices fell on Friday, after posting gains for two consecutive sessions, as they failed to break through the key level of $4,100 per ounce. The yellow metal is currently looking to stabilize above the daily pivot point of $4,067; if it manages to do so, it could rise toward resistance levels at $4,104 then $4,132. On the downside, if the price falls below the aforementioned pivot point, it could retreat toward support levels near $4,041 then $4,014.
Global energy and financial markets remained on edge on July 31, 2026, as investors weighed a combination of currency volatility, geopolitical tensions, and growing concerns over energy security. The U.S. dollar rebounded after suffering its sharpest one-day decline in months, while oil prices fell by more than $1 per barrel despite escalating tensions between the United States and Iran. At the same time, renewed threats by Yemen’s Houthi movement against shipping in the Red Sea heightened concerns over the security of Saudi Arabia’s oil export routes, underscoring the fragile balance between geopolitical risks and global energy supply.
Market Watch
Dollar Rebounds After More Than 2% Decline on Thursday
The U.S. dollar rebounded during trading on Friday after posting a decline of more than 2% in Thursday’s session, marking its steepest one-day loss in months. The recovery was driven by bargain buying and investors positioning ahead of upcoming economic data and monetary policy developments.
The rebound followed a sharp sell-off that came after the U.S. Federal Reserve decided to leave interest rates unchanged, while growing expectations about the future path of U.S. monetary policy weighed heavily on the greenback during the previous session.
Despite Friday’s recovery, investors remain focused on central bank actions across Asia, particularly following reports of interventions to support several regional currencies. Market participants are also closely watching upcoming U.S. economic data, which could shape the dollar’s direction in the weeks ahead.
Analysts said the dollar’s rebound reflects a technical correction following Thursday’s sharp decline. However, they noted that the currency’s near-term performance will continue to depend on interest rate expectations, inflation trends, and the overall strength of the U.S. economy.
Oil Falls by More Than $1 Despite Rising Tensions Between the United States and Iran
Oil prices fell by more than $1 per barrel during trading on Friday despite ongoing geopolitical tensions between the United States and Iran, as markets focused on signs of improving oil supply flows and profit-taking following the strong gains recorded over recent weeks.
Brent crude futures declined by $1.44 to $87.59 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.59 to $82.00 per barrel. Despite Friday’s losses, both benchmarks remain on track to post robust monthly gains of around 20%.
The decline came even as concerns over the U.S.-Iran conflict persisted. Increased movements of oil tankers through key shipping routes helped ease fears of supply disruptions, reducing the impact of geopolitical risks on global oil markets.
Market analysts said oil prices continue to be supported by a geopolitical risk premium linked to tensions in the Middle East. However, improving supply flows and the return of some exports to the market encouraged investors to lock in profits, putting downward pressure on prices during Friday’s session.
Houthis Threaten Saudi Oil Export Routes Through the Red Sea
Concerns over global energy supplies intensified after Yemen’s Houthi movement renewed threats targeting shipping in the Red Sea, raising fears over Saudi Arabia’s oil export routes, which rely in part on this strategic maritime corridor to reach international markets.
The renewed threats come amid escalating regional security tensions, prompting shipping companies to strengthen precautionary measures while a number of oil tankers continue to alter their routes to avoid high-risk areas. The diversions have increased both transportation costs and marine insurance premiums.
Market analysts warned that any further escalation in the Red Sea could disrupt crude oil flows from Saudi Arabia and other Gulf producers, particularly if commercial vessels or energy-related infrastructure become direct targets. Such developments could have a significant impact on global oil prices.
Although Saudi oil exports continue to flow without major disruption, financial markets are closely monitoring security developments in the Red Sea amid concerns that an expansion of attacks could disrupt global supply chains, increase shipping costs, and widen the geopolitical risk premium in energy markets.
Experts say the security of key maritime chokepoints, particularly the Red Sea and the Bab el-Mandeb Strait, will remain a critical factor influencing global oil markets in the coming months as regional tensions persist.