Gold is poised to close its first month in positive territory since February, when war broke out in the Middle East, supported by the US Federal Reserve’s decision to delay any interest rate increase until at least September. The yellow metal was trading in negative territory on Friday.
Gold fell 0.69% in early trading to $4,074.80 per ounce on Friday morning, but remains on course to post a monthly gain of approximately 2%. The precious metal came under pressure on the day as the US dollar recovered against the Japanese yen, following one of the yen’s strongest sessions of the year after what appeared to be an intervention by Japanese monetary authorities in the currency market.
Investor sentiment continued to be weighed down by escalating tensions in the Middle East, following a fresh exchange of strikes between the United States and Iran. The two countries appear increasingly distant from any diplomatic understanding, with expectations of a near-term peace agreement fading. Meanwhile, Saudi Arabia and 43 other nations are in discussions over the formation of an alliance to protect shipping in the Red Sea, which has been threatened by Houthi attacks.
Since the United States and Israel struck Iran in late February, triggering a conflict now in its fifth month, gold has lost approximately one-fifth of its value. The surge in energy prices has compounded inflationary pressures, pushing inflation further from central bank targets and prompting several monetary authorities to raise interest rates or signal further policy tightening.
The Federal Reserve has so far kept its benchmark interest rates unchanged. According to Helen Amos, analyst at BMO Capital Markets, the message from the central bank and its chair is that ‘inflation is not alarming, beyond the effect of energy prices.’
‘The market’s assessment of inflation may have already passed its peak,’ Amos said, adding that the Jackson Hole symposium at the end of August — where the Federal Reserve chair typically delivers key guidance on monetary policy — could represent the next major catalyst for gold.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/31/commodities-3/ouro-tropeca-mas-encaminha-se-para-fechar-primeiro-mes-no-verde-desde-fevereiro/
