Gold (GC=F) August futures opened at $4,102.40 per troy ounce on Friday, July 31, 2026, before moving to $4,112.90 at 8:22 a.m. ET. The spot price (XAU/USD) was reported at $4,080.14, though sources differ on the exact level, with some citing the futures opening and subsequent move.
The price action comes after the US Federal Reserve decided to leave interest rates unchanged earlier in the week. Additionally, the US paused airstrikes in Iran overnight, adding to a complex geopolitical backdrop.
Volatility Drivers
Gold remains volatile due to tensions between the US, Israel, and Iran, according to analysts. US President Donald Trump's shifting policy, especially regarding tariffs, is also fueling choppy price action, according to analysts.
The US Real Yield stood at 2.377%, while the US Dollar Index was at 100.23 and the 10-Year Treasury yield at 4.647%.
Gold price is rotating around the Weekly Point of Control at $4,087 and the Monthly Point of Control at $4,079. The July descending trend-line defines the upper boundary of the current trading range. Institutional options activity shows upside participation with additional call open interest at $4,225, $4,300, $4,400, $4,600, $4,700, and $5,000, while put positioning is concentrated between $4,025 and $4,125.
According to analysts, overnight GDP and PCE data were dovish, causing a sharp drop in the US dollar and briefly pushing gold prices above $4,100, though prices are consolidating around $4,050. The short-term trend for gold is bearish with high volatility, according to analysts.
Strategic Perspectives
On Jan. 29, gold's one-year gain was 95.6%. Experts offer differing views on gold allocations: Robert R. Johnson, professor at Creighton University's Heider College of Business, does not advocate gold investing, while Brett Elliott of APMEX recommends 10% or 15% for growth-oriented investors, Blake McLaughlin of Axcap Ventures suggests 5% to 8%, and Thomas Winmill of Midas Funds believes investors benefit from a long-term allocation of 5% to 15%.
In other markets, Bitcoin (BTC-USD) opened at $64,724.03 on Friday, 1.3% higher than Thursday's opening, and Ethereum (ETH-USD) opened at $1,917.16, up 0.4%. Meanwhile, the Director of the US Federal Housing Finance Agency (FHFA), William J. Pulte, ordered Fannie Mae and Freddie Mac to prepare to count cryptocurrency as an asset for a mortgage. The Strait of Hormuz remains closed.