Gold prices surged significantly yesterday, closing the month just shy of May's previous all-time high of $2,450 per ounce. This rise was driven by recent comments from the Federal Reserve signaling a more dovish monetary policy outlook.

During the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell acknowledged positive economic data and suggested that a rate cut might be on the horizon in September if conditions continue to improve. This dovish tone weakened the US dollar, making gold a more attractive investment and pushing its price upward.

The decline in the US dollar index played a crucial role in gold's rise, helping the precious metal register an impressive 5.35% gain in July. This development highlights gold's sensitivity to changes in interest rate expectations and broader shifts in monetary policy.