Precious Metals Slide as Stronger Dollar and Fed Comments Weigh on Gold and Silver

Gold and silver prices declined on Friday, July 31, due to a strengthening US dollar and hawkish Federal Reserve comments. The Comex gold futures contract fell $84 per troy ounce to an intraday low of $4,076, giving up part of Thursday's $124 rally. Despite the decline, gold remained 1.5% higher for July, putting it on track to register its first monthly gain since February.

Silver also dropped, falling $1.80 per troy ounce to $57.22. The white metal has been under pressure for the month and was on track to end July down about 4%, marking its second consecutive monthly decline.

The weakness in precious metals coincided with a recovery in the US Dollar Index, which rebounded to 100.3 on Friday. The index remained down nearly 1.5% for the week, its steepest weekly decline in three months, while extending its monthly loss to 1.3%. The Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%, but the decision was not unanimous, with three policymakers dissenting and voting in favor of an immediate rate hike.