On Friday, gold prices remained unchanged, and they are set for a fourth monthly loss in a row. This is due to the fact that demand for metal is continuing to decrease as a result of an increased value of the United States dollar and strong monetary policies from major central banks.
As of 00:45 (GMT), the spot price of gold remained unchanged at $1,755.59 per ounce. The price of an ounce of gold on the futures market in the United States rose by 0.1 percent, reaching $1,752.70.
The unexpected contraction of the U.S. economy in the second quarter increased the likelihood of an economic slowdown. This increased the attraction of gold as a safe-haven investment, which contributed to a rise of more than 1 percent in metal prices on Thursday.
Gold prices have gained 1.6 percent so far this week, putting them on course for their strongest week since the middle of May. However, it is quite improbable that bullion will be able to prevent a fourth consecutive monthly loss, which would be its worst run of losses since November 2020.
In spite of some day-to-day fluctuation, the value of the dollar has spent the most of July hanging near 20-year highs. As a result, demand for gold priced in dollars among holders of other currencies has been significantly reduced.
In an effort to combat the skyrocketing cost of living, the Federal Reserve of the United States increased interest rates by a quarter of a percentage point at its meeting on Wednesday. This was the second consecutive increase in interest rates.
The opportunity cost of owning a commodity that does not pay interest, such as gold, rises when interest rates and bond yields rise.
The price of spot silver increased by 0.2 percent to $20.01 per ounce, while the price of spot platinum rose by 0.2 percent to $889.81 per ounce; nonetheless, both metals are seeing monthly price declines.
The price of palladium increased by 0.4 percent to $2,086.02 and is now 7.7 percent higher than it was at this point in January. Palladium is on track to have its best month since January.