Gold Falls $40 from Record Highs as Dollar Strengthens

Published on Jul 19, 2024 13:47

Gold prices tumbled by nearly $40 to around $2,415 an ounce on Friday, retreating from record highs as the dollar surged on robust US economic data. The dollar index stayed above 104 after a 0.4% gain in the previous session, rebounding from a four-month low. Strong US manufacturing data from the Mid-Atlantic region in July boosted the dollar, despite a rise in weekly jobless claims attributed to seasonal factors. Despite this dip, gold is poised for its fourth consecutive weekly gain, fueled by optimism that the Federal Reserve will cut interest rates as early as September. The CME`s FedWatch Tool shows more than 95% chance of a rate cut at the Fed`s September meeting, maintaining bullish sentiment for gold. Domestic bullion futures for August delivery fell by over Rs 800 to a session low of Rs 73,316 per 10 grams on the MCX.