Gold Rebounds, Eyes First Monthly Gain Since February Amid Dollar Decline
Gold prices have stabilized in July after months of decline, potentially marking the precious metal's first monthly gain since February. Spot gold prices hovered around $4,050 an ounce on the last trading day of the month, resulting in a narrow monthly increase of 0.4%. The price had fallen as much as 2% earlier in the session due to a rebound in the US dollar.
The dollar index declined after its worst day since January 2023, triggered by the Federal Open Market Committee's decision to hold interest rates steady. This move benefited gold prices, which briefly rose above $4,100 an ounce and contributed to the monthly rise.
Additionally, softer inflation numbers in June eased concerns over Fed rate hikes, a factor that had weighed on gold prices for months. The World Gold Council reported that demand for gold held up throughout the second quarter despite weaker prices.