Gold Prices Surge on Weighed Expectations Amid US-Iran Conflict
Gold prices are on track to end their four-month slump as investors weigh the impact of the US-Iran conflict and parse Federal Reserve signals for clues on inflation and interest rates.
Spot gold inched 0.2% lower at $4,096.29 per ounce, but was headed for a weekly rise of 1.1%. This month, gold is poised to gain more than 2.2%, its sharpest gain since February.
The metal rose 2% on Wednesday after the Fed left interest rates unchanged and Chairman Kevin Warsh gave little indication on the central bank's next policy move. Markets are now pricing in a 63% chance of a rate hike in September, down from about 80% prior to the policy meeting.
The dollar gained about 0.3% after diving 2.4% in its biggest single-day drop since January 2023 on Thursday.