Gold Edges Higher Amid Middle East Tensions and Rate Hike Fears

Gold prices are on track to post their first monthly gain in five months, despite a mild decline on Friday. Spot gold fell 0.5% to $4,076.53 per ounce, but was still up about 1.8% this month.

The metal's price has been supported by bargain buying around the $4,000 level, as investors weighed developments in the Middle East and their impact on U.S. rate outlook. Tim Waterer, chief market analyst at KCM Trade, noted that gold has had a better run of things this month, with the $4,000 level serving as a key support.

However, 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.