US Dollar Rebound Sends Gold Prices Tumbling by 2% on Friday
Gold prices fell by 2% on Friday as the US dollar rebounded from its lowest point in over a month. Despite this decline, gold is still poised to post its first monthly gain in five months due to weaker inflation data and reduced expectations of further US rate hikes.
The spot price of gold dropped 1.3% to $4,049.83 per ounce at 1:40 p.m. EDT (1740 GMT), while US gold futures for August delivery fell 1.3% to $4,107.
Gold has gained 1.1% so far this month, its largest monthly increase since February, driven primarily by softer inflation data and declining oil prices.
Han Tan, chief market analyst at Bybit, noted that gold remains supported above $4,000 due to expectations of a broader focus on inflation measures beyond rate increases by Federal Reserve Chair Kevin Warsh.