Gold Prices Slip but Remain Poised for Monthly Gain
Gold prices slipped on Friday but were still poised to end their four-month losing streak. Spot gold fell by 0.5% to $4,076.53 per ounce as of 0504 GMT, while US gold futures for August delivery lost 0.5% to $4,079.60.
The decline was attributed to profit-taking and a moderate bounce in the US dollar, which makes dollar-denominated commodities more expensive for overseas buyers. However, prices have been gaining this month, with an increase of around 1.8%. The metal is also finding support at the $4,000 level.
The recent developments in the Middle East, including a drone strike on gas vessels in Egypt's Mediterranean port, are adding to market uncertainty and weighing on gold prices. However, analysts at BCA Research note that geopolitical tensions will continue to support gold as a hedge against US assets over the long run.