Gold Holds Ground, Poised for First Monthly Gain in Five Months

Gold prices declined on Friday but were poised for their first monthly gain in five months. The metal has been supported by bargain buying around the $4,000 level, with investors weighing developments in the Middle East and their impact on the U.S. rate outlook.

Spot gold fell 0.5% to $4,076.53 per ounce as of 0504 GMT but was headed for a weekly rise of 0.7%. Prices were up about 1.8% this month.

Tim Waterer, chief market analyst at KCM Trade, said that 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.

A stronger U.S. currency makes dollar-denominated commodities more expensive for overseas buyers.