Gold prices closed in the red today, Aug. 15, despite the US dollar decline amid growing expectations that the Federal Reserve will maintain its monetary tightening policy for a longer period.
Bullion for August delivery shed 0.45%, or $8.80, to finish at $1,935.20 an ounce.
Similarly, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, plunged by 0.1% to 103 points, after touching 102.8 points in early trading.
Data from the US Department of Commerce showed today that retail sales climbed by 0.70% last month, exceeding expectations of only 0.40% and marking the largest pace of increase in the index since last January.
The CME FedWatch Tool estimates a 57% chance of the Fed leaving rates unchanged this year, after the benchmark interest rate rose by 525 basis points since March 2022.
On Aug. 14, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell to the lowest level since January 2020, reflecting sluggish investor interest in bullion on the back of forecasts for higher interest rates.
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