Gold slips as US dollar regains footing; heads for first monthly gain in five
GLD•Gold falls as dollar recovers
July 31 (Reuters) - Gold dropped more than 1% on Friday as the U.S. dollar regained footing, but was still on track to post its first monthly rise since February as investors pared back rate hike bets after the Federal Reserve meeting this week.
Spot gold XAU= slipped 1.1% to $4,055.41 per ounce by 1050 GMT but was headed for a weekly rise of 0.5%. Prices were also up about 1.7% so far this month.
U.S. gold futures GCcv1 for August delivery dropped 1.2% to $4,053.60.
Physical demand and other metals
Meanwhile, gold demand in India remained muted this week as buyers waited for clearer price direction, while a stronger yuan lifted purchases in top consumer China. GOL/AS
Among other metals, spot silver XAG= fell 1.7% to $58.00 per ounce.
Platinum XPT= slid 1.3% to $1,638.77, and palladium XPD= dropped 1.1% to $1,289.77, although both metals were headed for a monthly gain.
Dollar, Fed signals and inflation data pressure bullion
"Gold struggles to regain meaningful momentum and remains in the corrective phase of a broader structural bull market," independent analyst Ross Norman said.
"The dollar index has staged a modest recovery back above the key 100 level following its sharp post-FOMC sell-off, taking some of the shine off gold today."
The dollar gained 0.3% after dropping about 2.4% on Thursday, in its biggest one-day drop since January 2023. A stronger dollar makes bullion more expensive for holders of other currencies. USD/
On Wednesday, the Fed left interest rates unchanged at its policy meeting, while U.S. central bank chief Kevin Warsh vowed to bring inflation down, leaving markets confused.
