Gold Prices Tumble Amid Strong Economic Data

US gold prices declined by 4.4% in July due to weakening investment demand, according to ChemAnalyst data.

The bearish sentiment was triggered when the Philadelphia Fed manufacturing index surged to **.*, more than triple consensus estimates, and initial jobless claims fell to ***,***, well below forecasts.

This resilient economic data reinforced expectations that the Federal Reserve would maintain restrictive monetary policy, raising real yields and increasing the opportunity cost of holding non-yielding gold.

Investment demand deteriorated sharply in July, with US physically-backed gold ETFs shedding significant tonnage after massive global outflows in June.