Gold Retreats Amid Dollar Rebound, Poised to End Best Month Since February
Gold prices retreated on Friday but remain poised to end its best month since February. The precious metal slid 2% after the US dollar rebounded from a more than one-month low hit in the previous session.
The price drop was driven by the strengthening of the US dollar, which makes gold more expensive for holders of other currencies. However, the metal's losses were limited as weaker inflation data reduced expectations of further US rate hikes.
Spot gold was down 1.8% at $4,027.75 per ounce, while US gold futures for August delivery dropped 1.9% to $4,025.10. Gold has gained 0.5% so far this month, its biggest monthly increase since February.
Han Tan, chief market analyst at Bybit, noted that although gold is on the cusp of ending a four-month losing streak, it has struggled to break above the psychological $4,000 level. The metal remains supported above $4,000 by expectations that Fed Chair Kevin Warsh may broaden the central bank's focus beyond its preferred inflation measures and rate increases.