Gold prices fell on Tuesday as the US dollar rose, while investors waited for critical economic data this week to see how long interest rates might be raised to combat sticky inflation.
Gold prices ended July 2.3% higher, the highest monthly gain in four months, on anticipation that the global central banks’ rate-hiking cycle was coming to an end. Lower interest rates increase demand for zero-yield bullion.
The release of US employment statistics later this week will be a major indicator for the Fed’s interest rate expectations, and any positive surprises might remind markets that another rate hike is still possible, which would impact gold.
The dollar rose after a Fed poll revealed that US banks reported stricter credit criteria and lower loan demand from firms and individuals in the second quarter.
