Gold fell on Friday but was on track for
its first monthly gain in five months, supported by bargain
buying around the $4,000 level, while investors weighed
developments in the Middle East and their impact on U.S. rate
outlook.
Spot gold fell 0.6% to $4,076.53 per ounce, as of
0253 GMT, but was headed for a weekly rise of 0.6%. Prices were
up about 1.7% this month.
U.S. gold futures for August delivery lost 0.4% to
$4,074.20.
“Gold is showing a mild negative bias today amid
profit-taking and a moderate bounce in the U.S. dollar,
following the metal’s gains yesterday and the corresponding fall
in the greenback,” said Tim Waterer, chief market analyst at KCM
Trade.
The dollar gained about 0.3%, after diving 2.4% in its
biggest single-day drop since January 2023 on Thursday. A
stronger U.S. currency makes dollar-denominated commodities more
expensive for overseas buyers.
However, “gold has had a better run of things this month. A
key support has been the metal finding a cushion of sorts around
the $4,000 level, which has attracted buyers on dips,” Waterer
said.
On Wednesday, the Fed left interest rates unchanged at its
policy meeting, and Chair Kevin Warsh gave little indication on
the central bank’s next policy move.
Markets are now pricing in a 63% chance of a rate hike in
September, according to CME Group’s FedWatch tool.
While gold is often seen as a hedge against inflation,
higher interest rates can dampen its appeal by raising the
opportunity cost of holding the non-yielding asset.
In the Middle East, a drone strike that sparked fires on two
gas vessels in Egypt’s Mediterranean port of Damietta has raised
a new threat to shipping through the Suez Canal, one of the last
major export routes available to Saudi oil amid the expanding
U.S.-Iran war.
“Over the long run, the Hormuz crisis will fade but
geopolitical multipolarity, hypo-globalization, and U.S. fiscal
imbalances will support gold as a hedge against U.S. assets,”
analysts at BCA Research said in a note.
Spot silver fell 0.8% to $58.48 per ounce.
Platinum slid 1.7% to $1,631.77, and palladium
fell 0.8% to $1,294, but both metals were headed for a monthly
gain.
Published on July 31, 2026
