Gold value falls 3.5% in July

The World Gold Council (WGC) reports that the value of gold fell by 3.5% in July as a result of a strong dollar and flat demand in the first half of the month, leaving it down 2.9% for the year to date, at $1 753/oz. However, softer inflation expectations mid-month and jobless claims a few days later in the US nudged the dollar and real rates down – these reversals also coincided with extended positioning in futures markets for currencies, gold and to a lesser extent, rates.