Gold Prices Maintain Stability Despite Weekly Losses

Gold prices maintained their stability in Friday's trading on July 18, but they face weekly pressures under the weight of a stronger US dollar and rising US economic indicators, reinforcing market expectations of the Federal Reserve possibly delaying any near-term monetary easing.

Gold in spot trading recorded $3337.60 per ounce by 05:03 GMT, while US gold futures fell by 0.1% to $3343.10, causing the yellow metal to lose about 0.5% since the beginning of the week.

Despite the dollar index slipping by 0.1% against a basket of currencies today, it is poised to achieve weekly gains for the second consecutive week, increasing pressure on gold by raising its purchasing cost in other currencies.

In this context, Calvin Wong, chief market analyst at OANDA, pointed out that "market participants are still cautiously assessing the conditions, and we do not expect the Federal Reserve to strongly lean towards monetary easing at this stage," following positive US economic data.

Retail sales data showed a 0.6% increase in June, compared to a 0.9% decrease in May, while new jobless claims dropped to 221,000, compared to expectations of 235,000, reflecting the strength of the US economy and supporting the likelihood of interest rates remaining high for a longer period.

In a related context, some other precious metals saw positive movements, with platinum rising to $1458.80 per ounce, marking its highest level since August 2014, while palladium jumped to $1293.32, achieving its highest price since August 2023. In contrast, silver remained stable at $38.13 per ounce.