Gold Prices Fall Over 1% Amid Profit-Taking, Rate Hike Odds Decline

Gold prices dropped over 1% on August 14 due to profit-taking after moderate US inflation data pushed the precious metal to its highest level in more than two months. The decline came as the US Producer Price Index remained unchanged month-on-month in July, while consumer prices edged higher as gasoline costs fell for the second consecutive month.

The probability of a September rate hike dropped to 35%, down from 55% a week earlier, according to the CME FedWatch Tool. Meanwhile, markets await the University of Michigan's preliminary reading of US consumer sentiment for August, along with its inflation expectations.

Gold futures prices fell more than 1% in today's trading, heading for a weekly decline amid profit-taking. The US Dollar Index edged down 0.10% to 99.86 points.