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Gold slides as dollar rebounds versus yen and Fed path stays in focus
Bullion slipped toward $4,050 an ounce, while the yen’s intervention-driven rally stalled and the dollar regained ground for a fifth straight dollar index decline on Thursday.
Gold prices fell as the dollar recovered versus the yen, with bullion pressured by renewed currency strength that reduces demand for non-US purchases, according to LiveMint Markets.
The move follows a yen surge after what appeared to be Japan’s intervention in foreign exchange markets, which drove the yen up as much as 3.3% against the greenback in New York trading on Thursday, the largest intraday gain since December 2023. LiveMint Markets also noted the Bloomberg Dollar Spot Index fell for a fifth consecutive session after Thursday’s move, before the dollar bounced back on Friday as the Bank of Japan kept policy settings unchanged and refrained from confirming intervention.
Even with the pullback, gold remained near key support around $4,000 an ounce, and LiveMint Markets said it was still tracking for a narrow monthly gain in July, its first since February.
Traders also continued to focus on clues for the Federal Reserve’s next steps, with a recent split decision to preserve current rates highlighting some policymakers’ belief that higher borrowing costs may be needed to reach the Fed’s 2% inflation target, according to LiveMint Markets. The article added that geopolitical risks in the Middle East, including renewed exchanges of strikes between the US and Iran, have been part of the broader backdrop for commodities.
Latest closeGold $4,098.60 ▼0.0%