Gold Heads for First Monthly Gain Since February Despite Friday Decline

Gold prices eased on Friday but remained on track for their first monthly gain since February, supported by softer U.S. inflation data and a weaker U.S. dollar.

Spot gold fell 0.6% to $4,077.60 per ounce, while U.S. gold futures declined 0.6% to $4,076.30. Despite the daily decline, gold has gained about 2% in July.

Market sentiment improved after June core PCE inflation, the Federal Reserve's preferred inflation measure, came in below expectations. The Fed kept interest rates unchanged earlier this week, while several policymakers reportedly favored a rate increase, highlighting differing views within the central bank.

Meanwhile, reports of Iran-Oman discussions over the Strait of Hormuz contributed to lower oil prices, while a weaker U.S. dollar also provided support for precious metals during the month.

Among other metals, platinum gained about 5.2% in July, silver was little changed, and copper advanced on expectations of tighter supply and improving industrial demand.

Investors will continue monitoring upcoming U.S. economic data and Federal Reserve communications for further policy signals.

Source: Reuters.