Gold prices fell nearly 1% on Thursday as stronger-than-expected U.S. economic data supported the Federal Reserve’s cautious approach to cutting interest rates, according to Reuters. A rise in the dollar and U.S. Treasury yields weighed on gold, which offers no yield. Despite this dip, analysts note that strong central bank demand, geopolitical tensions, and tariff risks may keep gold prices supported in the longer term. Jobless claims fell and retail sales rebounded in June, signaling continued economic resilience. Meanwhile, palladium rose slightly amid concerns over supply disruptions from Russia, while silver and platinum also declined. They write:
Gold prices extended declines and fell nearly 1% on Thursday after upbeat U.S. economic data aided the Federal Reserve’s cautious stance on resuming monetary easing this year.
Spot gold fell 0.9% to $3,315.15 per ounce, by 0936 a.m. EDT (1336 GMT) after hitting a session low of $3,309.59. […]
The dollar gained 0.3%, making greenback-priced gold more expensive for foreign currency holders.Data showed that the number of Americans filing new applications for jobless benefits fell last week, pointing to steady job growth in July. […]Gold is known as a hedge against uncertainty and inflation, but higher rates dim its appeal as it yields no interest. […]
