Gold Prices Rise as Dollar Falls Despite Weekly Losses

Global gold markets experienced mixed movements on Friday, August 15, as prices rose supported by a decline in the US dollar, but remained under pressure from expectations of reduced chances for a significant interest rate cut by the Federal Reserve.

Spot gold prices recorded a slight increase of 0.2% to reach $3341.50 per ounce, while they fell by about 1.7% since the beginning of the week. Futures contracts for December gold rose by a similar percentage to settle at $3388.90 per ounce.

This increase was accompanied by a decline in the dollar index by 0.27% to a level of 97.989 points, but pressures on gold continued due to strong US economic data. The Producer Price Index showed an annual increase of 3.3%, exceeding analysts' expectations of 2.5%. Additionally, initial jobless claims decreased to 224,000 claims, compared to expectations of reaching 228,000 claims.

These indicators reduced the likelihood of a half-point interest rate cut at the upcoming September meeting, negatively impacting demand for gold, which is considered a safe haven in a low-interest environment.

In a related context, silver prices in spot transactions rose by 0.2% to $37.89 per ounce, while platinum fell by 0.3% to $1351.78, and palladium dropped by 0.4% to $1140.69.