Gold prices finish 1% lower

Gold prices erased their early gains at settlement today, Aug. 5, pressured by a broad-based selling wave in global stock markets on growing economic concerns, despite the yellow metal being considered a safe-haven asset.

Bullion for December delivery finished 1%, or $25.4, lower at $2,444.4 per ounce, after exceeding $2,500 earlier in the session.

Likewise, the US dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.5% to 102.70 points at 09:35 pm Makkah time.

“Elevated geopolitical tensions and recent hopes for even greater Fed rate cuts should create supportive conditions for bullion. Ultimately, gold should be able to post a new record high once nerves settle,” said Chief Market Analyst at Exinity Group Han Tan, Reuters reported.

Demand for US Treasury bonds strengthened, with 10-year yields touching their lowest since mid-2023, as recession fears deepened after a stronger-than-expected July jobs report.