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Gold tumbles nearly 2% as the dollar firms below $4,050

The move comes with the US Dollar Index up 0.29% to 101.43 and WTI crude up nearly 14% to $93.14 a barrel, both weighing on gold.

Reported · Written up by our desk · Major Pairs

Gold prices fell nearly 2% on Thursday, with XAU/USD trading below $4,050 after slipping from a two day high above $4,100, according to FXStreet. The decline coincided with a rebound in the US dollar as investors priced in expectations that the White House could sustain its campaign against Iran, keeping Middle East tensions elevated.

FXStreet pointed to a firmer dollar as a headwind for the yellow metal, since it can make gold less attractive for foreign buyers. The outlet also cited a quieter US economic calendar that left traders focused on Initial Jobless Claims for the week ending July 19, which improved to 187K from 209K, below the 212K forecast.

The report said the jobs data supported the Federal Reserve’s inflation focus, while higher energy prices added pressure on gold sentiment. West Texas Intermediate climbed nearly 14% to $93.14 per barrel, and FXStreet noted that swaps markets raised the odds of a Fed rate hike at the July 29 meeting to about 40% from nearly 33% a day earlier, and to 76% for September.

Looking ahead, FXStreet said the next US releases include S&P Global Flash PMIs for July and New Home Sales for June, with additional attention next week on the FOMC meeting. The outlet added that gold’s downtrend would likely remain intact as long as bullion trades below $4,200, based on its technical view.

Latest closeGold $4,117.00 ▲1.1%

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