Gold tumbles on strong dollar, Fed uncertainty

15 Jul 2024 , 08:23 AM

Gold prices fell on Monday as the dollar remained strong, as investors waited for remarks from Federal Reserve officials and economic data to provide more clues about the US interest rate path.

The spot gold price was down 0.2% at $2,407.29 per ounce. Gold futures lost 0.4% to $2,411.20.

U.S. bond futures fell and the currency strengthened as investors bet that the attack on US presidential candidate Donald Trump made his win more likely, while infusing a new degree of political instability into markets.

As the dollar strengthens, buyers holding other currencies pay more for gold priced in the greenback.

Fed Chair Jerome Powell is scheduled to speak later today, as are a few other officials later this week. This week’s data sets include U.S. retail sales, industrial output for June, and weekly unemployment claims.

US consumer prices fell for the first time in four years in June, increasing the likelihood that the US central bank will cut interest rates in September.

The appeal of non-yielding gold is particularly strong in an environment of low interest rates.

Physical gold demand in Asian hotspots fell last week as rising prices prompted purchasers to postpone purchases, with dealers in India providing the highest discounts in nearly three and a half months to entice customers.

Spot silver decreased 0.5% to $30.62 per ounce, platinum declined 0.3% to $995.35, while palladium sank 1.3% to $956.81.

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