Strong US Economy, Gold Weakens Again
Gold prices fell nearly 1% on Thursday morning (July 17th) New York time, as market participants assessed the strength of the United States economy and the future of Federal Reserve Chairman Jerome Powell. Spot gold traded at $3,318.53 per ounce, down 0.9%, as the Bloomberg Dollar Index strengthened 0.4%. Other precious metals, such as silver and platinum, also fell, while palladium strengthened slightly.
Gold's decline followed the release of solid US economic data. Retail sales rose 0.6% in June, well above expectations, indicating that consumers were still actively spending. Furthermore, weekly jobless claims continued to decline for the fifth consecutive week to their lowest level since mid-April. Both figures reinforced confidence that the US economy remains resilient, reducing the urgency for the Fed to cut interest rates immediately.
However, market attention was also focused on the political dynamics surrounding the Fed. Rumors that President Donald Trump might fire Powell briefly rocked the market on Wednesday. Although Trump later denied any imminent action, uncertainty regarding the central bank's independence remained. This speculation had previously increased gold's appeal as a safe haven asset.
Going forward, market players will be monitoring the international trade agenda, including Trump's plan to send tariff letters to more than 150 countries. The potential for tariff increases of up to 15% could trigger new trade tensions, driving market volatility. Amidst this mixed global sentiment, gold remains a key indicator of investor risk sentiment.
Source: (ayu-newsmaker)
