Slight Decline in Gold Prices as Dollar Rises and US Jobs Data Awaited
Gold prices witnessed a limited decline during today's trading on Friday, August 1, heading towards a weekly loss amid the rise of the US dollar. This comes after US President Donald Trump imposed new tariffs on imports from dozens of countries, in addition to awaiting the release of the US jobs report later.
Gold futures showed a 0.2% decrease, reaching $3343.4 per ounce, while spot gold prices slightly rose by less than 0.1%, reaching $3290.74 per ounce.
The dollar index rose by less than 0.1%, remaining close to its highest level in two months, achieved last Thursday. The rise of the dollar increases the cost of gold for investors dealing in other currencies.
On Thursday, US President Donald Trump signed an executive order imposing "counter" tariffs ranging from 10% to 41% on imports from several countries and regions, affecting market sentiment and currency movements.
Investor attention is now focused on the US jobs report scheduled for release later today, which may provide indications about the Federal Reserve's monetary policy directions regarding interest rates, especially after the central bank kept rates unchanged at its weekly meeting last week.
It is worth mentioning that gold typically sees increased demand in a low-interest rate environment, as it is an asset that does not yield returns.
