Gold shows solid performance in July

A struggling dollar and serious doubts about whether or not the U.S. Federal Reserve will raise interest rates again this year sent gold to its highest point in almost seven weeks.

Spot gold was down 0.1 per cent at $1,267.4 an ounce by 2:00 p.m. EDT, after rising to its highest since June 14 at $1,270.98. This means that the precious metal showed a strong performance in July, as it is on course for a 2.1 per cent rise this month.

U.S. gold futures settled down 0.1 per cent at $1,266.60.

Quoted by Reuters, Commerzbank analyst Eugen Weinberg explained that geopolitical tensions and internal uncertainty could mean a stronger demand for gold as the U.S. currency falls into its lowest in 16 months against a basket of currencies.

Silver, on the other hand, was up by 0.8 per cent to $16.79 an ounce, after rising to $16.88, the highest since June 29.

Palladium climbed 1.1 per cent to $886.30, and platinum rose 1 per cent to $938.30.