PRECIOUS-Gold slips but on track to snap four-month losing streak
Reuters2026/07/31 07:11Updates prices as of 0703 GMT
By Pablo Sinha
July 31 (Reuters) - Gold fell on Friday but was on course for its first monthly gain in five months, supported by bargain buying around the $4,000 level, while investors weighed developments in the Middle East and their impact on U.S. rate outlook.
Spot gold XAU= fell 0.7% to $4,075.35 per ounce, as of 0703 GMT, but was headed for a weekly rise of 0.5%. Prices were up about 1.7% this month.
U.S. gold futures GCcv1 for August delivery lost 0.6% to $4,074.
"Gold is showing a mild negative bias today amid profit-taking and a moderate bounce in the U.S. dollar, following the metal's gains yesterday and the corresponding fall in the greenback," said Tim Waterer, chief market analyst at KCM Trade.
The dollar gained about 0.3%, after diving 2.4% in its biggest single-day drop since January 2023 on Thursday. A stronger U.S. currency makes dollar-denominated commodities more expensive for overseas buyers. USD/
However, "gold has had a better run of things this month. A key support has been the metal finding a cushion of sorts around the $4,000 level, which has attracted buyers on dips," Waterer said.
On Wednesday, the Fed left interest rates unchanged at its policy meeting, and Chair Kevin Warsh gave little indication on the central bank's next policy move.
Markets are now pricing in a 65% chance of a rate hike in September, according to CME Group's FedWatch tool. FEDWATCH
While gold is often seen as a hedge against inflation, higher interest rates can dampen its appeal by raising the opportunity cost of holding the non-yielding asset.
In the Middle East, a drone strike that sparked fires on two gas vessels in Egypt's Mediterranean port of Damietta has raised a new threat to shipping through the Suez Canal, one of the last major export routes available to Saudi oil amid the expanding U.S.-Iran war.
"Over the long run, the Hormuz crisis will fade but geopolitical multipolarity, hypo-globalization, and U.S. fiscal imbalances will support gold as a hedge against U.S. assets," analysts at BCA Research said in a note.
Spot silver XAG= fell 1.5% to $58.12 per ounce.
Platinum XPT= slid 1.5% to $1,635.10, and palladium XPD= fell 0.6% to $1,297.13, but both metals were headed for a monthly gain.
(Reporting by Pablo Sinha in Bengaluru; Editing by Mrigank Dhaniwala)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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