Gold futures down, still above $1,700

Gold prices declined today, July 21, but futures contracts are still above $1,700, with markets anticipating the first-rate hike by the European Central Bank (ECB) in 11 years, amid political developments in Italy following the resignation of Prime Minister Mario Draghi.

Gold futures for December delivery dipped 0.8%, or $13.80, to $1,703.90 an ounce at 11:20 AM GMT, with spot prices also down 0.50%, or $8.45, to $1,688.13.

Elsewhere, silver futures for September delivery fell 2.08% to $ 18.28 an ounce. Additionally, the spot price for platinum sank 0.75% to $854.76, while the spot price of palladium rose slightly by 0.08% to $1,862.95.

Gold shed more than $110 in July alone, amid growing expectations that the Federal Reserve may raise interest rates by a full percentage point after increasing consumer prices by 9.1% in June.

UBS Group AG's wealth management unit cut its forecast for gold prices to $1,600 by the end of September, and to $1,700 from $1,800 by the end of the year. Similarly, Citigroup indicated a possible plunge in prices of the yellow metal near $1,600 sometime this year.

In a note dated July 12, Citigroup analysts said the price drop to the $1,600 level is likely to last for a short period, albeit tempting for investors.