Gold Logs First Monthly Gain Since February
2026-07-31 14:48
By
Joana Ferreira
1 min. read
Gold fell to around $4,040 an ounce on Friday as the dollar rebounded from a more than one-month low.
Still, the metal gained about 0.5% in July, its first monthly increase since February, supported by softer US inflation data and the Federal Reserve's decision to keep interest rates unchanged.
Gains were capped by expectations of tighter monetary policy, with markets pricing in about a 65% chance of a Fed rate hike in September.
While Chair Kevin Warsh reaffirmed the Fed's commitment to lowering inflation without signaling an imminent hike, the three officials who dissented this week reiterated on Friday that further tightening is needed.
Meanwhile, renewed US-Iran hostilities continued to cloud the outlook, with fresh US strikes on Iranian targets reducing hopes for a near-term diplomatic resolution.
Since the conflict erupted in late February, higher oil prices have fueled inflation concerns and weighed on gold by strengthening expectations for higher interest rates.