Gold Prices Stabilize Amid Slumping Central Bank Demand

Gold's price closed July at $4,098.60 an ounce, down 1.54 percent on the day due to a resurgent US Dollar Index.

The monthly gain of one percent marks the end of a four-month losing streak but has done little to close the gap to January's record high of $5,626.80.

A batch of surprisingly resilient US economic data, including a jump in consumer confidence, weighed on gold's appeal as a hedge against inflation.

Central bank buying has slumped to a 15-year low after being revised downward by the World Gold Council from 244 tonnes to just 57 tonnes in the first quarter of this year.

Tether, however, added 14 tonnes of gold in the second quarter, lifting its holdings to more than 146 tonnes despite a difficult environment with prices falling 14 percent.