Gold closes down $3.50 as strong dollar pressures market

Gold futures on the New York Mercantile Exchange closed lower on Thursday (July 18) as a stronger dollar weighed on the market.

Meanwhile, gold futures on the COMEX (Commodity Exchange) for August delivery fell $3.50, or 0.14%, to settle at $2,456.40 an ounce.

October platinum futures fell $22.10, or 2.19%, to settle at $986.00 an ounce.

September palladium futures fell $25.00, or 2.62%, to settle at $929.20 an ounce.

The dollar index, which measures the greenback against a basket of six major currencies, rose 0.41% to 104.173, weighed on gold as a stronger dollar makes dollar-priced gold more expensive and less attractive to investors holding other currencies.

However, Citigroup predicts that gold prices are likely to rise to $2,700-$3,000 over the next six to 12 months, regardless of who wins the US presidential election in November.

In addition, gold prices are expected to continue to be supported by expectations that the US Federal Reserve (Fed) will cut interest rates for the first time this year in September, as well as positive factors from the view that gold is a safe asset at a time when geopolitical situations remain tense.