Gold Prices Fall Slightly as US Dollar Gains Strength
Gold prices moved slightly lower on Friday as the US dollar gained strength and investor confidence improved due to hopes of trade agreements. The current gold price is around $3,360 per ounce, showing a small drop of about 0.2%. US gold futures also slipped by 0.3%.
This drop came as traders started taking profits. There’s growing hope that the US might reach a tariff agreement with the EU, similar to what was signed with Japan earlier. These positive signs reduced the demand for gold, which is a common safe-haven asset during times of uncertainty.
Even though the US dollar strength affected gold, some weakness in the dollar later helped limit losses. A weaker dollar usually supports gold prices by making it cheaper for buyers using other currencies.
Fresh economic data showed that US jobless claims fell unexpectedly, which suggests that the labor market is still strong. However, hiring remains slow, creating a mixed economic outlook. Many traders are now focused on the upcoming Federal Reserve meeting on July 29–30. The central bank is expected to keep interest rates steady, but markets are already preparing for a possible rate cut in September.
Other metals also moved: silver slightly fell but remained strong for the week, while platinum and palladium slipped a bit.
Impact:
Gold price forecast suggests it might stay between $3,360 and $3,365. If the US dollar stays strong and trade optimism continues, demand for gold could remain low.