Precious metal, Gold dropped from a six-week high on Thursday, July 27, pressured by the dollar’s bounce on solid U.S. economic data and as traders digested the Federal
Spot gold was flat at $1,260.86 an ounce by 2:26 p.m. EDT (1826 GMT), after peaking at $1,264.99, its highest since June 15.
U.S. gold futures for August delivery settled up 0.9 percent at $1,260, after falling in the prior session before the Fed released its statement.
The dollar turned higher after data showed shipments of key U.S.-made capital goods increased in June for a fifth straight month.
The resulting rise in the greenback pressures dollar-denominated gold since it makes the metal more expensive for investors paying in other currencies.
Rising U.S. interest rates increase the opportunity cost of holding non-yielding gold bullion, while boosting the greenback, in which it is priced.
In other precious metals, silver fell 0.4 percent to $16.55 per ounce, after reaching a one-month high at $16.82. Platinum fell 0.2 percent to $927, while palladium
gained 0.7 percent to $871.45 an ounce after touching a one-month high at $885.30.
“Palladium still looks quite expensive considering the weaker demand backdrop in the global car market, but we will only get more data in early August,” Julius Baer’s Menke said.
