Dollar Strength and Higher Oil Prices Weigh on Gold and Silver

Friday saw spot gold and silver trading lower in late-afternoon U.S. dealings, pressured by a stronger dollar, higher Treasury yields, and firmer crude prices.

The softer PCE inflation report on Thursday provided some support to the metals, but it was not enough to offset the negative factors.

Spot gold was around $4,050.70 per ounce, off 1.27%, while spot silver was near $57.75, down 1.93% for the session.

The Federal Reserve's decision on Wednesday to keep its target range unchanged at 3.50% to 3.75% supported the argument that it may hold steady on rates, but it did not eliminate the possibility of a September rate increase.

Oil prices advanced more than 1% on Friday and posted their strongest monthly gain since March, as the ongoing Iran conflict continued to disrupt vital shipping routes and sustain a war-risk premium in crude.