Gold on track for monthly gain on Mideast fears

Gold prices were on track to register their best month since March on Wednesday led by geopolitical concerns and hopes of an interest rate cut in September as focus shifted to the US Federal Reserve's upcoming policy decision, reports Reuters.

Spot gold was up 0.7 per cent at $2,424.29 per ounce, as of 1341 GMT, and has gained more than 4 per cent this month. US gold futures were up 0.7 per cent to $2,422.50.

The Fed is expected to leave rates unchanged as it concludes its two-day meeting later in the day, but could also hint that a reduction in borrowing costs could come as soon as September.

Hamas leader Ismail Haniyeh was assassinated early on Wednesday morning in Iran, the Palestinian militant group and Tehran said, drawing threats of revenge on Israel in a region already shaken by the war in Gaza and a deepening conflict in Lebanon.