Gold holds firm near $4,400 after 10% gain in August as eyes turn to the Fed

Spot gold is trading between $4,350 and $4,420 per ounce within a session range extending from about $4,357 to $4,435, after December contracts opened at $4,408.20, down 0.3% from Thursday's close, before rising to around $4,419 at the start of US trading.

At these levels, the yellow metal has achieved gains of nearly 10% since the start of the month, maintaining trades above the $4,400 barrier across most sessions of the week, supported by weaker-than-expected US jobs data that reshuffled expectations regarding the path of monetary policy.

However, the dollar's rebound to a two-week high limited gold's rise, as bets grew on potential monetary tightening in 2026 due to inflation fears tied to oil price volatility, after US July consumer inflation came in at 3.4% year-on-year, matching expectations.

Tensions between Washington and Tehran and Houthi attacks on shipping continue to support demand for safe havens, while analysts believe that crossing the 200-day moving average at $4,502 opens the door to a new upward wave, while initial support centers at $4,302.