World gold prices fell in the trading session on July 31 due to profit-taking activities and the USD recovering, but still on track to record the first month of increase after 5 months thanks to bottom-fishing buying around the threshold of 4,000 USD/ounce.
As of 3:26 PM Vietnam time, spot gold prices fell 40.58 USD/ounce to 4,060.54 USD/ounce, equivalent to a decrease of 0.99% in the past 24 hours. Meanwhile, gold futures for August delivery fell 0.77% to 4,068.50 USD/ounce.
The USD index rose about 0.3% after falling sharply by 2.4% in the previous session – the largest one-day drop since January 2023. The strengthening greenback makes gold more expensive for buyers holding other currencies, thereby putting pressure on precious metal prices.
However, gold prices still increased by about 1.7% in July, marking the first month of increase since February. The 4,000 USD/ounce mark continues to be an important support threshold when attracting buying power whenever prices adjust.
In the recent policy meeting, the US Federal Reserve (Fed) kept interest rates unchanged. According to CME Group's FedWatch tool, the market currently assesses about 65% of the Fed's ability to raise interest rates in September. High interest rates often reduce the attractiveness of gold because the precious metal does not yield yields.
In other precious metals markets, silver prices decreased 1.59% to 58.07 USD/ounce; platinum fell 1.60% to $1,637.73 an ounce; palladium fell 0.89% to $1,296.50 an ounce.
