The value of gold dropped today, reaching its lowest level in three weeks, which was due to increased risk appetite and strengthening of the dollar against a basket of major currencies.

Precious metals are also under pressure against the background of the increased likelihood of the Fed raising interest rates after the publication of strong US data. This is unlikely to happen at the July meeting of the central bank, but closer to the end of the year. Currently, the market players assess the chances of a rate hike at 42% in December. Increase in interest rates by the Fed this year, putting pressure on the precious metal, competing with higher-yielding assets in the period of growth rate.

"After the release of positive US data, investors revised their estimates on Fed rate increase. In addition, some speculators preferred to take profits after a good rally in early July.", - said Commerzbank analyst Daniel Briesemann. It is worth emphasizing thay since the beginning of this year, gold rose in price by about 25 percent.

International Monetary Fund, however, has reduced its global growth forecasts for the next two years, citing the uncertainty regarding Brexit.

Investors are also waiting for the outcome of the ECB meeting to be held tomorrow. Economists say that the ECB is likely to refrain from further easing, but it can make changes to the bond buying program by expanding the list of assets available for the acquisition.

The cost of the August gold futures on the COMEX trading at $ 1317.70 per ounce.