Gold Holds Firm as Japanese Intervention Weakens Dollar

The price of gold has held its gain from the past two days, buoyed by a sharp decline in the US dollar after Japan intervened to bolster the yen. As of early trading on Friday, July 30, gold was near $4,100 an ounce, putting it on track for its first monthly gain since February.

The metal has also benefited from the US Federal Reserve's decision not to raise interest rates, despite inflationary pressures caused by the war in the Middle East. Higher borrowing costs can be a headwind for precious metals, as they do not pay interest.