International gold prices surged nearly 2% on July 21 (US Eastern Time) as bargain hunters entered at the $4,000 support level amid the ongoing US-Iran military conflict entering its tenth consecutive day. August delivery gold futures (GCQ6) on the COMEX division of the Chicago Mercantile Exchange Group rose $70.80 (1.76%) to $4,086.70 per troy ounce at 3:01 PM, recovering from the previous settlement price of $4,015.90. The rally occurred despite rising US Treasury yields, as the $4,000 psychological level demonstrated solid support over approximately one month since late June.
Trump Rejects Iran Dialogue Amid Continued Military Strikes
The United States and Iran continued military exchanges for the tenth consecutive day. While Israeli media reported that Iran desired a ceasefire and dialogue, President Donald Trump dismissed the prospect of talks. Speaking to reporters before a bilateral meeting with Lebanese President Joseph Aoun at the White House, Trump stated: "They are being hit seriously, so they desperately want to meet to end this situation. Until they are ready to meet in a meaningful way, we are not interested." Trump also addressed Yemen's Houthi rebels, who declared they would blockade the Red Sea, stating he would "take appropriate measures" against both Iran and the Houthi forces.
Gold Breaks Above $4,000 Despite Rising Treasury Yields
US Treasury yields expanded their gains during the session, with the 2-year note yield rising 5.30 basis points from the previous close. Higher interest rates typically reduce the appeal of non-yielding assets like gold. However, gold prices extended gains and reclaimed the $4,000 level, indicating strong buying interest at that technical threshold.
Technical Analysis Shows Month-Long Support at $4,000 Level
Gold prices fell below the $4,000 level on June 24 and spent approximately one month confirming support at that price point. Before the downward breach in late June, the last time gold closed below $4,000 on a settlement basis was October 2, 2025. The sustained defense of this level over the past month attracted bargain hunters back into the market.
Commerzbank Highlights Psychological Support at $4,000
Commerzbank stated in a report: "The psychologically important $4,000 level in the gold market appears to be holding firmly." The bank added: "Concerns about US interest rate increases may delay a more robust recovery."
FAQ
What caused gold futures to rise on July 21?
Gold futures rose $70.80 (1.76%) to $4,086.70 per troy ounce as bargain hunters entered the market at the $4,000 support level, which had held for approximately one month since late June amid the ongoing US-Iran military conflict.
What did President Trump say about dialogue with Iran?
Trump stated that Iran was "being hit seriously" and "desperately" wanted to meet to end the conflict, but added "until they are ready to meet in a meaningful way, we are not interested," rejecting dialogue prospects.
How long has the $4,000 level supported gold prices?
Gold prices fell below $4,000 on June 24 and spent approximately one month confirming support at that level. Before late June, the last time gold closed below $4,000 on a settlement basis was October 2, 2025.
