Gold prices end lower as US dollar rises to highest level in over a month

Gold prices recorded a modest drop at settlement today, Aug. 14, as the US dollar rose to its highest level since July 6, amid market anticipation for new clues about the future of US interest rates after conflicting inflation indicators.

Bullion for August delivery closed 0.1% lower at $1910.6 an ounce, after nearing its lowest level in a month in early trading.

US inflation indicators, released last week, showed consumer prices growing moderately to 3.2% in July, after June's 3% reading.

The Producer Price Index rose slightly at a more-than-expected pace, raising concerns that the US Federal Reserve will proceed with its tightened monetary policy cycle for a longer period, while gold became less appealing for traders.

Markets are awaiting the release of July data on US retail sales indicators tomorrow, Aug. 15, in addition to the issuance the minutes of the Federal Reserve’s August meeting the day after, looking for clues about the path of monetary policy in the coming period.

The US dollar index, which measures the performance of the US currency against a basket of six major currencies, climbed by 0.20% to 103.03 points, its highest level in more than a month.