There has been a significant decline in gold prices in the international market. Global gold prices fell more than 1 percent on Friday (July 31) on the strength of the US dollar and the latest policy decision by the US central bank (Fed). At the same time, prices of silver, platinum and palladium also showed a downward trend.
On Friday, the price of spot gold in the international market decreased by 1.1 percent to 4 thousand 55.41 dollars per ounce. At the same time, US gold futures fell 1.2 percent to $4,536.00 per ounce.
In an interview given to the Reuters news agency, market analyst Ross Norman said that after the meeting of the Federal Open Market Committee (FOMC) of the US central bank Federal Reserve, the pressure on the gold market has been created due to the reversal of the dollar index. A rise in the value of the dollar makes gold relatively more expensive for holders of currencies in other countries, reducing demand and causing prices to fall.
Earlier on Thursday (July 30), the dollar index fell by about 2.4 percent, but on Friday it rose again by 0.3 percent. Analysts believe that this recovery has also had a negative impact on gold prices.
Meanwhile, the US central bank's decision to keep interest rates unchanged to control inflation has created uncertainty among investors. This has affected the capital market as well as the precious metal market. According to data from the CME FedWatch Tool, market expectations for interest rate changes in September have changed. Currently, a large section of traders feel that there is more uncertainty in interest rate decisions than before, which is also affecting the gold market as a safe-haven investment.
Apart from gold, prices of other precious metals also fell. The price of silver per ounce in the international market decreased by 1.7 percent to 58 dollars. The price of platinum decreased by 1.3 percent to 1 thousand 638.77 dollars. In addition, the price of palladium decreased by 1.1 percent to 1 thousand 289.77 dollars per ounce.
According to analysts, the future direction of the international gold market will depend on new data on the US economy, the dynamics of the dollar and the Fed's next policy stance in the next few weeks.
