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Reuters reported that spot gold had inched 0.2 percent lower to $4,096.29 per ounce in early trading on Friday although the metal stayed on track to gain more than 2.2 percent for the month which would mark its sharpest advance since February and end a four-month slump. US gold futures for August delivery rose 0.1 percent to $4,094.10 while the metal recorded a 1.1 percent increase over the week. The performance reflects renewed safe-haven buying amid uncertainty over monetary policy and fresh geopolitical risks in the Middle East.
The Federal Reserve kept interest rates unchanged at its most recent policy meeting where Chairman Kevin Warsh offered limited clues about the next steps the central bank might take. CME Group figures showed that markets are now pricing in a 63 percent chance of a rate hike in September down from about 80 percent prior to the announcement. The US dollar rose 0.3 percent after posting a 2.4 percent drop the previous day which had been its largest single-day decline since January 2023.
A drone strike on gas vessels in Egypt’s Mediterranean port of Damietta has raised the prospect of a new front in the US-Iran conflict that could threaten navigation through the Suez Canal and disrupt Saudi oil exports Reuters noted. Government data indicated that the US Personal Consumption Expenditures Price Index slipped 0.1 percent month-on-month in June marking the weakest reading since April 2020. Economists cautioned that the inflationary easing may prove temporary as renewed hostilities push oil prices higher.
According to the World Gold Council global gold demand remained steady year-on-year at 1,268.9 metric tons in the second quarter of 2026. Accelerated purchases by central banks offset a slump in investment demand the council said in its report released on Thursday. Such official buying has provided a consistent floor for prices even as retail and institutional investors reduced exposure.
Movements across other precious metals remained mixed on the day. Spot silver held steady at $58.98 per ounce while platinum declined 1.3 percent to $1,638.97 and palladium eased 0.2 percent to $1,301.94. The relative stability in silver contrasted with gold’s gains and highlighted differing sensitivities to industrial demand and safe-haven flows.
Investors continued to monitor incoming economic data for further clues on the Federal Reserve’s likely path for rates in the second half of the year. Developments in the US-Iran conflict are expected to influence commodity markets particularly if they lead to sustained increases in energy costs. Additional releases on inflation and growth indicators will likely shape trading strategies in the sessions ahead.
