Gold is on track for its first monthly gain in five months, with prices rising approximately 1.8% to 2.1% in July. [3, 13] While prices saw a slight dip on the last day of the month due to profit-taking and a minor rebound in the U.S. dollar, the precious metal has been sustained by strong buying interest whenever it approaches the key $4,000 per ounce level. [5, 13]
The advance in July has been primarily driven by two key factors. Support came after the U.S. Federal Reserve decided to hold interest rates steady this week, which weakened the dollar and made gold more attractive for foreign buyers. [2, 3, 9, 12] Additionally, persistent geopolitical tensions in the Middle East, particularly involving the U.S. and Iran, have bolstered gold's appeal as a safe-haven asset for investors. [5, 8]