Gold prices edge higher amid Middle East tensions

Gold prices posted weekly and monthly gains despite a slight decline on Friday, as ongoing tensions in the Middle East continued to support demand for the precious metal, Reuters reported.

Spot gold fell 0.5% to $4,076.53 an ounce on Friday. However, it was up 0.7% for the week and about 1.8% for July, putting the metal on track for its first monthly gain in five months. US gold futures for August delivery also slipped 0.5% to $4,079.60 an ounce.

Tim Waterer, chief market analyst at KCM Trade, said Friday’s decline was driven by profit-taking following the previous session’s rally and a stronger US dollar. He added that buying interest has remained firm around the $4,000-an-ounce level, helping support prices.

The US dollar rose about 0.3% on Friday after weakening a day earlier, making gold more expensive for buyers using other currencies.

The US Federal Reserve kept interest rates unchanged at its policy meeting on Wednesday. Markets are continuing to assess the outlook for future monetary policy after the central bank gave no clear indication of its next move.

In a research note, BCA Research said long-term factors, including geopolitical uncertainty, slowing globalization and US fiscal challenges, are expected to continue supporting gold prices even if tensions around the Strait of Hormuz ease.

Among other precious metals, spot silver fell 0.5% to $58.70 an ounce, platinum declined 1.2% to $1,639.77, and palladium slipped 0.2% to $1,301.50 an ounce.