Gold prices decline with the rise of the dollar and anticipation of the path of US interest rates
Gold prices declined today, Monday, with a slight rise in the US dollar from its recent lows, but declining expectations of a US interest rate hike limited the precious metal’s losses.The price of gold in spot transactions increased by 0.6 to $4,151.33 per ounce, by 07:21 GMT, after hitting its highest level since June 22 earlier in the session. US gold futures (August delivery) rose 1.1% to $4,172 an ounce.
In other precious metals, Spot silver rose 1% to $61.77 an ounce after hitting its highest level since June 23 earlier in the session. Platinum lost 0.3% to $1,632.80, and palladium fell 0.5% to $1,267.65 an ounce.
On the other hand, The dollar rose by 0.15%, making dollar-denominated gold more expensive for holders of other currencies.
Gold prices rose more than 2% last week, ending a 4-week losing streak, after weaker-than-expected US jobs data eased concerns about continued inflation and higher interest rates.
Data on Thursday showed a sharp slowdown in US job growth during the month of June, with jobs data for the previous two months being revised. lower, indicating a slowdown in the labor market, and prompted markets to lower their expectations for a rate hike by the Federal Reserve in the near term.
Traders now see a 55% probability of a rate hike in September, down from more than 60% before the data was released.
The bank said "JP Morgan" The demand for gold from the main sectors will not be as strong as expected, which will limit bullion prices this year to $4,300 per ounce in the third quarter and $4,500 in the fourth quarter.
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