Gold dips on as dollar regains strength, but the yellow metals is still headed for its first monthly gain since February. The early morning slip was driven by profit taking.
Gold had gained support from a weaker dollar after Japan intervened to support the yen as well as the Federal Reserve’s decision this week to hold interest rates unchanged. Pressuring gold has been increased military strikes this week between the U.S. and Iran.
December gold futures rose 1.6% Thursday to settle at $4,160.60 an ounce on Comex, and the front-month contract is up 0.8% so far this week. Bullion is up 3% in July after sliding 12% in June and dropping 0.8% in May. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently down $75.00 (-1.80%) to $4085.60 and the DG spot price is $4023.20.
The weaker dollar makes gold more affordable to holders of other currencies, and keeping rates unchanged is seen as bullish because it makes gold a more attractive alternate investment. Inflationary pressures stemming from the Mideast conflict caused three voting members of the Fed’s policy-setting Federal Open Markets Committee to vote this week to raise interest rates, and investors increasingly expect a rate hike in the coming months.
The Fed on Wednesday held interest rates steady at 3.5% to 3.75% but the dissenters signaled growing support for a rate hike in 2026. About 65% of investors tracked by the CME FedWatch Tool are betting on a 25 basis point rate hike at the Fed’s next policy meeting in September. The Fed has kept interest rates unchanged this year after three previous rate cuts.
At issue is rising inflation exacerbated by the Iran war, which has sent oil prices soaring because of a shutdown of the Strait of Hormuz, a key waterway for the energy industry.
After the Fed decision Wednesday, Chair Kevin Warsh said the central bank will take necessary steps to meet its 2% inflation goal.
Thursday, the personal consumption expenditures price index, the Fed’s favorite inflation measure, came out with June data showing inflation cooled but remained elevated last month but remained well above the central bank’s 2% target. Separately, U.S. GDP data released Thursday showed the economy was weaker than expected in the second quarter.
Front-month silver futures gained 1.6% Thursday to settle at $59.02 an ounce on Comex, and the September contract increased 0.2% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver is down 1.5% in July after declining 21% in June and gaining 2.5% in May. It lost 15% in the first half of 2026 after rising 141% last year. The September contract is currently down $1.652 (-2.80%) an ounce to $57.365 and the DG spot price is $57.17
Spot palladium added 4% Thursday to $1,311.00 an ounce and is up 4.3% in the first four days of the week. Palladium is up 7.6% this month after dropping 11% in June and losing 12% in May. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is down $41.70 an ounce to $1269.50.
Spot platinum advanced 3.7% Thursday to $1,658.60 an ounce and is up 3.6% this week. Platinum is up 6.4% this month after tumbling 19% in June and dropping 3.2% in May. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently down $31.30 an ounce to $1624.90.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.