Gold Prices Poised for Monthly Gain Amid US-Iran Tensions and Fed Signals

The price of gold is on track to end its four-month slump, with investors weighing the impact of the US-Iran conflict and signals from the Federal Reserve. Despite a slight decline in spot gold prices, which inched down by 0.2% to $4,096.29 per ounce, the metal is poised for a weekly gain of 1.1%. This would be its first monthly increase in five months, with a potential gain of over 2.2% this month, the sharpest since February.

The Fed's decision to leave interest rates unchanged and Chairman Kevin Warsh's comments have led markets to price in a lower chance of a rate hike in September, down from about 80% prior to the policy meeting. This has contributed to a decline in the dollar, which gained around 0.3% after plummeting 2.4% on Thursday.

Global gold demand remained steady year-on-year at 1,268.9 metric tons in the second quarter of 2026, with central banks accelerating purchases to offset a slump in investment.