Gold prices end steady above $1,980

Gold prices maintained a stable stance at settlement today, July 19, with markets evaluating the release of economic data that affirmed the impact of tightening monetary policy on the US economy, suggesting that the cycle of interest rate hikes by the Federal Reserve may soon end.

The yellow metal ended yesterday's session at its highest level since June 6, after the issuance of data that reflected the slowdown in US retail sales, which raised expectations of the imminent end of the monetary tightening cycle by the Fed.

Today's data showed an unexpected slowdown in the US housing market, as the pace of single-family housing starts fell by 8% in June, with overall building permits also down by 3.7% during the same month.

Currently, markets are pricing in an almost 100% chance that the US central bank will lift interest rates by 25 basis points during the upcoming July meeting. Further, forecasts, with a 59-88% probability, are also suggesting rates would stabilize thereafter at the 5.25-5.50% range at the remaining three meetings this year.

Markets are awaiting the release of the weekly unemployment benefits data on July 20, seeking more clarity about the future course of the Fed’s monetary policy stance.

Bullion for August delivery held ground at $1,980.8 an ounce.

Similarly, silver futures for September delivery held ground at $25.28 an ounce, while platinum spot prices gained 0.15% to reach $987.85.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, climbed by 0.16% to 100.10 points.