Home Business Firm dollar pushes gold to fourth straight monthly loss

Firm dollar pushes gold to fourth straight monthly loss

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Gold prices were flat on Friday and

poised for a fourth consecutive monthly drop, as an elevated

U.S. dollar and aggressive monetary policies from top central

banks continued to erode demand for bullion.


* Spot gold was flat at $1,755.59 per ounce, as of

0045 GMT. U.S. gold futures edged up 0.1% to $1,752.70

per ounce.

* The U.S. economy unexpectedly contracted in the second

quarter, raising risks of an economic slowdown, which lifted

gold’s safe-haven allure and helped bullion prices gain more

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than 1% on Thursday.

* Gold is on track for its best week since mid-May, with

prices up 1.6% so far. However, bullion is unlikely to stave off

a fourth straight monthly decline, its worst run of losses since

November 2020.

* Despite some day-to-day volatility, the dollar has

spent most of July hovering around 20-year highs, hammering

demand for greenback-priced gold among other currency holders.

* The U.S. Federal Reserve on Wednesday hiked interest rates

by three-quarters of a percentage point for the second straight

meeting as it attempts to fight soaring inflation.

* Higher rates and bond yields increase the opportunity cost

of holding non-interest bearing gold.

* Spot silver firmed 0.2% to $20.01 per ounce, and

platinum gained 0.2% to $889.81, but both face monthly


* Palladium rose 0.4% to $2,086.02, and is set for

its best month since January, having gained 7.7% so far.


0530 France GDP Preliminary QQ Q2

0645 France CPI (EU Norm) Prelim YY July

0755 Germany Unemployment Chng, Rate SA July

0800 Germany GDP Flash QQ SA, YY NSA Q2

0900 EU HICP Flash YY July

0900 EU HICP-X F&E Flash YY July

0900 EU GDP Flash Prelim YY, QQ Q2

1230 US Consumption, Adjusted MM June

1400 US U Mich Sentiment Final July

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Sherry Jacob-Phillips)

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