Gold prices fell in Tuesday trading, pressured by a strengthening U.S. dollar that ended a five-day losing streak.
The precious metal declined toward $4,050 an ounce, reversing some of the recent gains that had kept it on track for a narrow monthly increase in July.
The pullback reflects a shift in market sentiment as the intervention-driven rally in the Japanese yen stalled, allowing the dollar to recover ground against major peers.
The move in gold underscores the metal's sensitivity to currency fluctuations and interest rate expectations.
As the dollar regained strength, the opportunity cost of holding non-yielding assets like bullion increased, prompting profit-taking among traders.
The price action suggests that while gold remains near historic highs, near-term momentum is being checked by broader macroeconomic forces rather than supply-demand dynamics within the mining sector.