Gold prices finish in green, end best month since March

Gold prices closed in the green today, July 31, recording the best monthly performance since March, as the US dollar weakened as forecasts grew that major global central banks may be nearing the end of current monetary policy tightening cycles.

Recent data showing signs of cooling inflation in the United States has raised expectations that the Federal Reserve was closer to ending its fastest rate hiking cycle since the 1980s. This, in turn, boosted investor interest in the yellow metal, amid the US dollar's downward trajectory for the second straight month.

According to the CME FedWatch Tool, markets are pricing in a 60% chance that the Fed will leave rates unchanged this year. Further, European Central Bank (ECB) policymakers also raised the prospect of an end to the ECB’s string of rate hikes.

At settlement today, gold for September delivery jumped almost 0.50%, or $9.50, to hit $1,979.60 an ounce, posting monthly gains of more than 2%.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, rose by 0.14% to reach 101.76 points at 08:52 pm Makkah time.

“I don’t think the Fed’s going to make a move in September, but later in the year, if we continue to get strong economic data, the Fed probably will make one more rate-hike,” said Jim Wyckoff, senior market analyst at Kitco.