Gold prices recorded their first monthly gain in five months in July, rising about 1.1% despite a sharp sell-off triggered by a rebound in the US dollar. The precious metal remained resilient, maintaining levels above the psychologically important $4,000 per ounce mark, according to livemint.com.
The recent decline in gold prices was caused by a stronger US dollar, which triggered profit booking in bullion. After plunging about 2.4% on Thursday, the US dollar steadied on Friday, leading to a sharp pressure on gold prices. However, the overall monthly performance showed gains, highlighting the metal's ability to withstand currency fluctuations, the report said.
Gold's resilience comes amid ongoing geopolitical tensions and economic uncertainty, factors that analysts say will continue to support prices in the near term. The precious metal's ability to hold above $4,000 per ounce contrasts with its five-month downward trend, suggesting renewed investor interest as a safe-haven asset in volatile markets.
Gold's price movement in July marks a notable shift after months of decline, with the metal poised to close the month with gains. The next key data point will be the August market performance, which investors will watch closely to assess whether gold can sustain this upward momentum, livemint.com noted.