Gold posts first monthly gain since February as declining energy costs and geopolitical easing offset Fed policy uncertainty.
Gold prices extended their recovery, marking the first monthly gain since February. The rally was driven by a sharp decline in oil prices and easing geopolitical tensions in the Middle East, reducing inflation concerns.
Diplomatic efforts to improve shipping conditions through the Strait of Hormuz contributed to the drop in energy costs. Markets remain focused on US monetary policy, with expectations of prolonged higher interest rates capping significant upside for bullion.
While lower energy prices improve the macroeconomic backdrop, gold remains constrained by uncertainty over the Federal Reserve’s rate trajectory. Analysts suggest further declines in oil could support bullion, but persistent rate hike expectations limit potential gains.