Gold Prices Stagnate Amid Uncertainty Over Inflation

The price of gold ended July at $4,027 an ounce, up from the previous month but still 7.8% lower since the start of this year.

This leaves gold 25% below its record high of $5,405 an ounce reached on January 29, a milestone that will need to be surpassed for the precious metal to return to its earlier peak.

The World Gold Council says inflation is not necessarily a guarantee for a major rally in gold prices, as it depends on how real interest rates, the US dollar, and expectations for economic growth are affected.

According to the council, a possible second wave of high inflation could still occur due to factors such as strategic stockpiling, competition for critical resources, and increased government and corporate spending linked to artificial intelligence.