Gold price today, July 31: Sharp drop as USD increases

(NLDO) – Gold prices today, July 31, fell sharply on the international market, under pressure from the US economic recovery and the significant increase in the value of the USD.

World gold price today plummets

International gold price falls freely

As of 6:00 a.m. on July 31 (Vietnam time), the price of gold today on the international market dropped sharply to 3,328 USD/ounce, down 50 USD compared to the peak in last night's trading session (3,330 USD/ounce).

US economy recovers strongly

The US economy recorded an impressive growth rate in the second quarter, reaching 3%, far exceeding the forecast of 2.4% growth and recovering strongly from the 0.5% decline in the first quarter. This growth was driven by a sharp decline in imports, after a spike in the first quarter due to tariff-related hoarding activities.

Personal consumption expenditures (PCE) rose 1.4% in the second quarter, in line with expectations and up from 0.5% in the previous quarter. However, declines in business investment and exports offset the growth. This positive economic report reduces the possibility of the US Federal Reserve (Fed) cutting interest rates in the near term, putting great pressure on gold prices today.

USD increases in value, Fed keeps interest rates unchanged?

The US dollar index rose sharply today, reaching a two-month high, making gold more expensive for investors holding other currencies. Meanwhile, crude oil prices were steady at $69.7 a barrel, while the yield on 10-year US Treasury bonds remained around 4.4%.

Traders are now focused on the outcome of the Fed's meeting that ends on the morning of August 1. The market expects the Fed to keep its benchmark interest rate unchanged. However, many observers believe that Fed Chairman Jerome Powell may signal the possibility of easing monetary policy as inflation shows signs of cooling.

Gold Price Forecast: Secrets You Need to Know

The appreciation of the US dollar and expectations of high interest rates continue to put pressure on world gold prices. However, if the Fed signals future policy easing, gold prices could recover today thanks to its role as a safe haven asset. Investors need to closely monitor developments from the Fed meeting and subsequent economic data to make appropriate decisions.

In Vietnam, at the end of July 30, SJC gold was sold at 121.5 million VND/tael, while ring gold was at 117.2 million VND/tael.

Source: https://nld.com.vn/gia-vang-hom-nay-31-7-giam-manh-196250731062113202.htm