Gold Prices Fall on Profit-Taking but Poised for Monthly Gain

Despite a daily drop in gold prices on Friday, the precious metal is poised to record its first monthly gain in five months. The decline was attributed to profit-taking and the strengthening US dollar, which rose by 0.3 percent after experiencing its sharpest daily drop since January 2023 on Thursday.

The spot gold price was traded at $4,056 during the midday session, with a weekly increase of 0.6 percent and a monthly rise of approximately 1.7 percent maintained.

KCM Trade's Chief Market Analyst Tim Waterer noted that the main reason for the decline was profit realization and the strong dollar. He emphasized that the $4,000 level forms a significant support and that buyers view this level as an opportunity in potential declines.

The market is closely monitoring interest rate steps ahead of the Fed's September meeting, with markets pricing in a 63 percent probability of a rate cut. Geopolitical tensions also continue to influence markets, with regional crises potentially subsiding but global polarization and protectionist policies keeping safe-haven demand for gold alive.