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Market data placed spot gold at $4,096.29 an ounce after a 0.2 percent decline in early trade on July 31 while U.S. gold futures for August delivery rose 0.1 percent to $4,094.10. COMEX gold futures fell 0.39 percent to $4,144.40 an ounce and silver futures eased 0.22 percent to $58.89 an ounce according to CNBC TV18. The moves left the metal on course for a monthly advance exceeding 2.2 percent that would represent its strongest performance since February and its first gain after four consecutive monthly declines.
Geopolitical uncertainty across West Asia has sustained demand for safe-haven assets with a drone strike targeting gas vessels at Egypt’s Mediterranean port of Damietta raising fears that the U.S.-Iran conflict could widen and disrupt shipping through the Suez Canal. Such risks have historically driven investors toward bullion as a store of value during periods of elevated tension. The developments come against a backdrop in which regional instability has repeatedly influenced commodity markets over the past year.
The U.S. Federal Reserve held interest rates steady at its most recent meeting prompting traders to scale back expectations for a September hike from roughly 80 percent to 63 percent according to CME Group’s FedWatch Tool. Fed Chair Kevin Warsh provided no explicit signals on the timing of future adjustments which has supported non-yielding assets such as gold. Lower anticipated borrowing costs tend to reduce the opportunity cost of holding bullion.
A 0.3 percent rebound in the U.S. dollar limited some upside for precious metals by raising their cost for buyers using other currencies CNBC TV18 reported. Separate data showed the Federal Reserve’s preferred PCE price index declined 0.1 percent month-on-month in June marking its weakest reading since April 2020. Analysts have warned that renewed oil price volatility stemming from Middle East tensions could nevertheless sustain longer-term inflation concerns.
Global gold demand held steady at 1,268.9 tonnes in the April-to-June quarter as increased central bank purchases offset softer investment flows the World Gold Council figures cited in the report showed. Demand in India contracted 6 percent over the same period weighed by elevated prices higher import duties and muted seasonal interest. The steady overall consumption underscores institutional support for the metal even as retail patterns vary across major markets.
Silver faced parallel downward pressure in Friday’s session while the broader outlook for gold remains anchored to developments in monetary policy and geopolitics with inputs from Reuters. Market participants continue to weigh the balance between easing rate expectations and persistent regional risks that could shape bullion flows in the months ahead. The current trajectory reflects a shift from the declines recorded in the preceding four months.
