Global gold prices dip but eye first monthly gain in five months

Global gold prices experienced a slight dip on Friday, July 31, 2026, but remain poised to achieve their first monthly gain in five months. The precious metal's trajectory is being influenced by geopolitical tensions in the Middle East and their potential effect on US interest rate forecasts.

In international markets, spot gold fell 0.5% to $4,076 an ounce. Despite this daily decrease, gold was heading for a weekly gain of approximately 0.7% and a monthly increase of about 1.8%. US gold futures for August delivery also declined by 0.5% to $4,079 an ounce.

The US dollar has shown volatility, rising 0.3% on Friday after a significant 2.4% drop the previous day. A stronger dollar typically makes dollar-priced commodities more expensive for buyers using other currencies.

Market participants are closely watching the Federal Reserve's next move on interest rates. The Fed recently maintained its interest rates, and its chairman provided little indication of the central bank's future policy. Markets are currently pricing in a 63% probability of an interest rate hike in September.

Gold is traditionally seen as an inflation hedge, but rising interest rates can diminish its appeal by increasing the opportunity cost of holding a non-yielding asset. Meanwhile, other precious metals like silver and platinum also saw declines, though platinum and palladium were on track for monthly gains.