Gold prices on track for first monthly rise in five months

The spot price of gold is poised to record its first monthly increase in five months, finding firm support near the $4,000 per ounce level. A recent dip to $4,062.22 was attributed to profit‑taking and a rebound in the U.S. dollar, which had earlier fallen 2.4% – its biggest one‑day drop since early 2023. The Federal Reserve kept rates unchanged at its latest meeting, with Chairman Kevin Warsh offering no clear guidance, while the CME FedWatch tool shows a 65% chance of a rate hike in September. Geopolitical tension also underpins demand, after a drone attack sparked fires on two gas tankers in Egypt’s port of Damietta, raising concerns over Suez Canal shipping risks. Higher rates typically dampen gold’s appeal because the metal yields no income.