Dollar Rebound Sinks Gold Prices Below $4,100

Spot gold prices fell by 0.39% on Friday to $4,087.29 per ounce, as the US Dollar Index rebounded by 0.26%. This pressure on gold came a day after it surged 3.4% to an intraday high of $4,173.90, driven by cooling US inflation data and the Federal Reserve's decision to hold interest rates steady.

Fed Chair Kevin Warsh reaffirmed the central bank's commitment to fighting inflation but offered no clear policy signals, with market expectations for a September rate hike cooling to around 60%. The decline in gold prices was also influenced by coordinated currency intervention by the Japanese government and US authorities, which triggered sharp swings in the yen.

Despite this near-term pressure, gold is still poised for its first monthly gain since February, up roughly 2.1% in July, while platinum emerged as the month's best-performing precious metal with a 5.2% advance.