Gold Prices Set for Biggest Monthly Rise in Four Months,...

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Monday saw gold prices set to achieve their most substantial monthly increase in four months. This boost was driven by mounting speculations that major central banks are approaching the conclusion of their ongoing monetary policy tightening measures in their battle against inflation.

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At 0110 GMT, spot gold dipped 0.2% to $1,956.02 per ounce, while U.S. gold futures declined 0.3% to $1,955.40 per ounce.
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Expectations of a potential peak in U.S. interest rates have boosted gold prices, leading to a monthly gain of approximately 2%, the highest since March. This trend has also contributed to the dollar (DXY) heading for its second consecutive monthly decline.
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An increase in interest rates discourages the purchase of non-interest-paying bullion, as it is priced in dollars.
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On Friday, data revealed that annual U.S. inflation experienced its slowest growth in over two years in June, strengthening the belief that the Federal Reserve was approaching the conclusion of its most rapid interest rate hiking cycle since the 1980s.
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On Friday, two European Central Bank policymakers suggested the possibility of concluding the ECB's most aggressive and prolonged series of interest rate hikes. This proposal came as the economic outlook for the euro zone deteriorated, despite persistent high inflation.
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The Bank of Japan initiated a gradual departure from decades of extensive monetary stimulus, signaling a more flexible approach to allowing the country's interest rates to rise in tandem with rising inflation and economic growth.
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Last week, Chinese physical gold premiums reached their highest level in four months due to strong demand, while a price decline led to a minor recovery in gold purchases in India.
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On Friday, SPDR Gold Trust (GLD), the largest gold-backed exchange-traded fund in the world, reported a 0.3% decrease in its holdings.
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