Gold firms near month-low, due to stronger dollar and US bond ‎yields

Gold prices stabilized near the lowest level in a month today, Friday, ignoring the better-than-expected US inflation data for the past month, as the precious metal continues its path towards the worst weekly performance in seven weeks, with the continued strength of the dollar and US bond yields.

According to Reuters, spot gold prices rose 0.2% to $1916.53 an ounce by 0727 GMT, but it was trading near the lowest level since July 7, which it touched earlier in the day. And the US gold futures contract settled at $ 1948.80.

Gold recorded gains of 0.8% yesterday, after data showed that the US consumer price index rose less than expected in July, which reinforced bets that the US central bank will likely not raise interest rates again in 2023.

Increases in interest rates usually raise bond yields and thus increase the opportunity cost of possessing gold that does not yield a return.

Gold prices fell by about 1.3% this week, while the dollar index and the benchmark ten-year Treasury yields are heading for gains for the fourth consecutive week.

As for other precious metals, silver rose in spot transactions by 0.2% to $22.72 an ounce, and platinum by 0.6% to $912.04, however, they tend to record losses for the fourth consecutive week.