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Gold falls $84 as US dollar rebounds and Fed comments turn hawkish
Comex gold remained 1.5% higher for July, but silver was on track for about a 4% monthly decline as the US Dollar Index rose to 100.3.
Gold and silver prices retreated on Friday, 31 July, as a rebound in the US dollar and hawkish comments from Federal Reserve officials weighed on investor sentiment, according to LiveMint Markets.
Comex gold futures fell $84 per troy ounce to an intraday low of $4,076, giving back part of a Thursday rally, while silver declined $1.80 to $57.22.
The pullback also came alongside strength in the US Dollar Index, which rose to 100.3 on Friday, even as it remained down nearly 1.5% for the week and had extended its monthly decline to 1.3%.
LiveMint Markets noted the Fed kept its benchmark interest rate unchanged at 3.5% to 3.75%, but some policymakers argued further tightening is needed to return inflation to target, with concerns about renewed price pressures linked to the conflict involving Iran and the inflationary impact of tariffs. Higher interest rates can pressure non-yielding assets like gold by raising the opportunity cost of holding bullion.
Latest closeGold $4,098.60 ▼0.0%|Silver $57.77 ▼1.8%|Dollar index 99.80 ▼0.2%