Gold dips after touching over month-high

Gold decreased today, Wednesday, after touching the highest level in a month and a half in the last session, affected by a slight rise in the dollar, despite investor expectations that recent US economic readings will convince the Federal Reserve (the US Central Bank) to stop the cycle of raising interest rates.

According to “Reuters”, spot gold fell 0.1 percent to $1976.05 an ounce by 0350 GMT, after hitting its highest level since May 24 at $1984.19 on Tuesday.

There was little change in the US gold futures contracts at 1980 dollars

The dollar index rose slightly after hitting its lowest level in more than a year on Tuesday, making gold more expensive for buyers holding other currencies.

US retail sales increased less than expected last month, rising 0.2 percent, compared to economists’ expectations of a 0.5 percent rise in a Reuters poll.

Yap John Rong, market strategist at IG, said that while the US central bank is widely expected to raise interest rates by 25 basis points at its meeting on July 26, the bank is “expected to maintain its hawkish tone, which is what It may represent a challenge to the bullish trend of gold.”

According to 106 economists polled by Reuters, the expected rate hike on July 26 to the range of 5.25-5.50 percent may be the last time the US central bank raises interest rates in the current monetary tightening cycle.

Lowering interest rates reduces the opportunity cost of owning gold that does not yield a return

As for other metals, silver fell in spot transactions by 0.1 percent, to $ 25.06, and platinum fell by the same percentage, to $ 982.22 an ounce.

Palladium lost about 1 percent, recording $1,306.97, after rising to its highest level since June 26 at $1,325 on Tuesday.