Gold futures fell nearly 1 percent during the US session, its lowest since July 17, 2017, as the dollar index rose for the first time in three sessions from its lowest since July 11, according to the inverse relationship between them following developments And the economic data that followed Tuesday on the US economy and on the eve of the testimony of Federal Reserve Governor Jerome Powell to Congress.
Gold futures for August delivery fell 0.63% to currently trade at $ 1,231.90 per ounce, the lowest level in comparison with the opening at $ 1,239.70 an ounce, amid the dollar index rose 0.21% To 94.71 levels, showing a bounce back from its lowest level in a week compared to the opening at 94.51.
We have followed the US economy, the world’s largest economy and the world’s largest industrial nation, reading the Industrial Production Index, which showed a rise of 0.6% from a 0.5% decline in May, beating expectations of a 0.5% rise in conjunction with the Energy Efficiency Index Growth accelerated to 78.0% from 77.7% in May, below expectations of 78.4%.
Gold price
In addition, attention is being drawn to what Federal Reserve Governor Jerome Powell’s half-year policy on monetary policy will bring to the Senate Banking, Housing and Urban Affairs Committee at 02:00 GMT amid investors’ appetite for any hints from Powell about the future of politics Cash and the pace of tightening monetary policy during the coming period.
Federal Reserve Secretary Paul is expected to give the second half of his semi-annual testimony to the House of Representatives Financial Services Committee on Wednesday following his brief report of discussions on monetary policy and economic developments as well as the Federal Reserve’s outlook for Congress last weekend, To raise interest rates on federal funds four times this year.
The World Gold Council recently reported a 7% decline in global demand for the yellow metal in the first quarter of 2018 to 973.5 mt, the lowest demand since the first quarter of 2008. The drop in demand for gold was led by the investment sector , Showing that the total investment in the yellow metal fell 27% to 287 metric tons against 393 metric tons in the first quarter of last year 2017.
The Gold Council also reported that investment in bullion and gold coins also declined in the first quarter by 15%, while central banks’ demand for gold rose 42% to 116.5 mt, particularly with Russia’s demand for yellow metal rising, At 487.7 mt during the first quarter, in conjunction with the growth of the supply of mines 1% on an annualized basis during the last quarter to about 770 metric tons.
Gold holdings in the SGB-D-Er Gold Trust Fund, the world’s largest gold-backed index fund, fell on Monday by 1.18 mt to 794.01 mt, its lowest level since August 14, That gold prices fell 5.4% in the second quarter last in the second quarterly losses during the last three quarters.