Gold prices end in red as US dollar firms

Gold prices settled lower today, July 24, amid expectations that major central banks will lift interest rates this week.

In early trading, the yellow metal’s prices increased after the release of the S&P Global July survey, which showed that the continued monetary tightening by major central banks crippled some of the world’s largest economies, alongside renewed recession fears.

In July, the S&P Global US Composite Purchasing Managers' Index (PMI) tumbled to a five-month low. Likewise, the Eurozone Composite PMI fell to its lowest level in eight months.

According to the CME FedWatch Tool, markets are currently pricing in a near 99% chance of a 25-basis-point interest rate hike at the Federal Reserve’s July 25-26 meeting.

Limiting the bullion’s losses, market expectations range between 65-81% that the US central bank will fix key rates at the 5.25-5.50% range at the rate-setting committee's remaining three meetings this year.

At settlement today, gold for August delivery shed 0.20%, or $4.4, to $1,962.20 an ounce, after touching $1,969.8 in early trading.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, climbed by 0.25% at 101.35 points at 08:39 pm Makkah time.