Gold prices fall amid stronger dollar, anticipation of US inflation report

(MENAFN) Gold prices experienced a decline on Wednesday as the strength of the US dollar put pressure on the precious metal. Spot gold prices decreased by 0.7 percent, settling at USD2,507.64 per ounce as of 05:31 GMT. This drop comes in the wake of gold reaching a record high of USD2,531.60 on August 20, highlighting the volatility in the market. Investors are closely monitoring the situation, as the strength of the dollar has dampened gold’s appeal as a safe-haven asset.

In addition to the impact of the stronger dollar, market participants are awaiting a crucial US inflation report scheduled for release later this week. This report is expected to provide insights into the potential direction of interest rates, with speculation around a possible rate cut in September influencing investor sentiment. The anticipation of this economic data is contributing to the fluctuations in gold prices.

US gold futures also followed a downward trajectory, falling by 0.4 percent to USD2,542.80 per ounce. This decrease reflects the broader trend observed in the gold market, driven by both currency dynamics and market expectations regarding future monetary policy. As investors prepare for the forthcoming inflation report, gold remains subject to significant price swings influenced by economic indicators and currency movements.

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