Gold declined on Wednesday after touching its highest level in a month and a half in the previous session, affected by a slight rise in the dollar. This occurred despite investors' expectations that recent U.S. economic readings would persuade the Federal Reserve to halt its interest rate hike cycle. Spot gold fell 0.1% to $1,976.05 per ounce, after reaching a peak of $1,984.19 since May 24 on Tuesday. U.S. gold futures showed little change at $1,980.
U.S. retail sales recorded a less-than-expected increase last month, rising by 0.2% compared to economists' predictions of a 0.5% rise in a Reuters survey. Analyst Jap Goh Rong at IG expected the Federal Reserve to raise interest rates by 25 basis points at its meeting on July 26. Lowering interest rates reduces the opportunity cost of holding gold, which does not yield returns.
Regarding other metals, silver slipped 0.1% to $25.06 in spot transactions, and platinum also fell by the same percentage to $982.22 per ounce. Palladium lost about 1%, recording $1,306.97 after peaking at its highest level since June 26 at $1,325 on Tuesday.
