Gold Sees First Monthly Gain Since February Amid Fed Signals

Gold prices are on track to end their four-month slump as investors weigh the implications of recent Federal Reserve signals. The U.S.-Iran conflict and slowing inflation have also influenced gold's performance this month.

Spot gold inched 0.2% lower at $4,096.29 per ounce, but was headed for a weekly rise of 1.1%. This represents the metal's sharpest gain since February, with prices increasing by more than 2.2% this month.

The Federal Reserve's decision to leave interest rates unchanged has led markets to reassess their expectations for future rate hikes. The probability of a rate hike in September now stands at 63%, down from around 80% prior to the policy meeting.