Precious metals continued their decline throughout July with gold reaching its lowest level since January 2017 and silver dipping to its lowest since March 2016. Platinum reached a 10-year low and palladium dropped to its lowest level in over a year. Gold finished the month down 2.3% and silver performed even worse, down 3.5% in July. Platinum and palladium finished down 1.1% and 2.0% respectively.
Gold’s decline was influenced greatly by June’s economic data, released in early July. Employment data showed job creation beat estimates by 18,000. Later, CPI data showed modest inflation for June, falling short of predictions with only a 0.1% rise. Limited inflation and healthy job creation put a lot of pressure on metals which lasted through the month.
The US dollar finished down 0.6% in July, its first negative month since March. However, equity markets performed well, with the Dow and S&P 500 rising 4.7% and 3.6% respectively in July—their best month since January. The dollar wasn’t weak enough for gold to capitalize and the added pressure from surging stocks and positive economic data created a scenario where metals took a back seat to other investments.