Gold price falls big. Check why is gold rate down

Gold prices edged lower on Thursday, weighed down by a stronger dollar and robust U.S. economic data, while caution persisted as markets awaited clarity on tariff developments. Spot gold fell 0.3 per cent to $3,337.43 per ounce after hitting a session low of $3,309.59. U.S. gold futures settled 0.4 per cent lower at $3,345.3. The US dollar gained 0.3 per cent, making the greenback-priced gold more expensive for foreign currency holders.

Why is Gold Price Down?

Following the latest U.S. data, "there was a bit of rise in the dollar and U.S. Treasury yields are higher. So, it's put a little weakness in the gold market," said Bob Haberkorn, senior market strategist at RJO Futures.


U.S. jobless claims fell last week, pointing to steady job growth in July, while retail sales data beat expectations, adding 0.6 per cent last month, though some of the gain likely reflected tariff-driven price increases. Fed Governor Adriana Kugler said the Fed should not cut interest rates "for some time" as the impact of Trump administration tariffs begins to pass through to prices.

Gold is often regarded as a hedge against uncertainty and inflation, but higher interest rates diminish its appeal, as it yields no interest.

Will Gold Rate Go Up?

On the trade front, Japan's top trade negotiator held talks with the U.S. Commerce Secretary on U.S. tariffs, as Tokyo races to avert a 25 per cent levy that will be imposed unless a deal is clinched by an August 1 deadline.

If President Donald Trump follows through on his threats and trade tensions escalate, it’s not a stretch to imagine gold challenging — and potentially breaking- its record highs again, said Fawad Razaq, market analyst at City Index and FOREX.com.

Meanwhile, gold exports from Switzerland jumped 44 per cent month-on-month in June as bullion flew back to the vaults in the United Kingdom from the U.S. via Swiss refineries, Swiss customs data showed on Thursday.

Palladium was up 3.8 per cent at $1,277.78, reaching its highest level since September 2023. Fears of an escalating war in Russia, a major palladium exporter, are fuelling supply concerns and driving prices higher, Haberkorn said. Elsewhere, spot silver added 0.3 per cent to $38.07 per ounce and platinum gained 3.1 per cent to $1,460.13.

FAQs

Q1. What are Palladium prices?
A1. Palladium was up 3.8 per cent at $1,277.78, reaching its highest level since September 2023. Fears of an escalating war in Russia, a major palladium exporter, are fuelling supply concerns and driving prices higher, Haberkorn said.

Q2. What are current gold prices?
A2. Spot gold fell 0.3 per cent to $3,337.43 per ounce after hitting a session low of $3,309.59. U.S. gold futures settled 0.4 per cent lower at $3,345.3.