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Gold stays above $4,000 as dollar rebound pressures prices

Bullion is still on track for its first monthly gain in five months, with July up more than 1% as traders scale back expectations for additional Fed hikes.

Reported · Written up by our desk · Precious Metals

Gold prices slipped after a rebound in the US dollar prompted profit taking, but bullion remained supported above the psychologically important $4,000 per ounce level, according to LiveMint Markets.

The dollar steadied after a sharp drop, helping explain the near-term pressure on dollar-denominated metals, but the broader backdrop stayed constructive: gold is on track for its first monthly gain in five months, and it has gained more than 1% in July, its strongest monthly performance since February.

LiveMint Markets attributes the rally to softer-than-expected US inflation data that led investors to reduce expectations for further Federal Reserve rate hikes this year. Fed Chair Kevin Warsh reiterated the central bank’s commitment to returning inflation to its 2% target, while stopping short of signaling another hike is imminent.

The World Gold Council sees prices as broadly consistent with moderate growth, cooling but still elevated inflation, and expectations for limited additional tightening, projecting gold to remain largely range-bound within about 5% of current levels. The outlet also notes geopolitical tensions involving the United States, Iran, and Iran-backed Houthi forces, plus the possibility that higher oil prices could add inflation pressure, could help reignite safe-haven demand.

Latest closeGold $4,098.60 ▼0.0%

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