US Dollar Strength Drives Down Gold Prices
Gold prices in the US declined on July 31 as the stronger dollar reduced demand for the precious metal. According to Reuters, spot gold fell 1.1% to $4,055.41 per troy ounce, while US gold futures slipped 1.2%. Despite the losses, gold is set to register a monthly gain of around 1.7% for July.
The stronger dollar made the metal more expensive for holders of other currencies, putting pressure on gold prices. Investors also weighed the Federal Reserve's policy outlook and monitored inflation concerns, which have been supported by higher oil prices in recent weeks.
Expectations that the Fed could eventually ease monetary policy have helped support gold prices throughout July, according to Reuters. Gold remained on course for its first monthly gain in five months despite Friday's decline.