Gold Tumbles as Hawkish Fed and Stronger Dollar Combine

Gold prices slid to $4,098.60 per ounce last Friday, down 1.54 percent from the previous day and bringing the metal uncomfortably close to the psychologically significant $4,000 threshold.

The decline was largely attributed to a stronger US Dollar Index, which climbed 0.3 percent to reclaim the 100-point mark, making gold more expensive for foreign buyers.

A divided Federal Reserve added to the market's uncertainty, with nine committee members voting to hold interest rates unchanged at 3.50-3.75 percent and three regional presidents advocating for a rate hike.

Fed Chair Kevin Warsh emphasized 'no tolerance' for persistent price pressures while pointing to easing core PCE inflation, which dropped to 3.7 percent in June from 4.1 percent previously.