Spot gold fell 2% on Friday, weighed down by a rebound in the US dollar that erased the greenback's one-month low from the previous session.
Despite the intraday pullback, the precious metal is positioned to finish July with its best monthly return since February, marking a significant shift in momentum after a prolonged period of weakness.
The price action underscores the persistent sensitivity of gold to currency fluctuations, even as broader market sentiment has begun to stabilize around the $4,000 level.
The dollar's recovery provided immediate headwinds for the safe-haven asset, as traders adjusted positions ahead of the weekend.
The price action underscores the persistent sensitivity of gold to currency fluctuations, even as broader market sentiment has begun to stabilize around the $4,000 level.
This weekly performance stands in stark contrast to the severe downturn seen earlier in the year.
Spot gold was on course to record its largest monthly decline since October 2008 in June, shedding 12.1% during that period.