Gold prices rise on US dollar pullback

Gold prices rose today, July 18, as the US dollar weakened after traders lowered Federal Reserve rate hike expectations while assessing inflation forecasts.

Gold futures for August delivery increased 0.49% to $1,711.90 an ounce at 09:54 am Makkah time, with spot prices also up 0.42% to $1,714.62 per ounce after recording the fifth weekly consecutive loss, falling near its lowest level in 11 months.

Elsewhere, silver futures for September delivery also surged by 1% to $18.78 per ounce. The spot price of platinum also jumped 0.76% to $856.94, with the spot price of palladium also soaring by 2.62% to $1,875.02.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six currencies, fell 0.28% to 107.67 points.

Meanwhile, the dollar index - which measures the performance of the US currency against a basket of six major currencies - decreased by 0.28% to 107.67 points.

According to Reuters, investors retreated from expectations of a 100-basis-point (bp) rate hike by the US central bank this month, after the five-year inflation projections issued by the University of Michigan fell on Friday to 2.8% in July from 3.1% in the month before.

Fed policy makers last week reiterated their support for another 75-bp interest rate rise next week to combat inflation. The European Central Bank (ECB) is also set to raise rates by 25 bps this week.