Gold Prices Plummet After Reaching Two-Month High on Inflation Data

Gold prices declined on Friday as investors locked in profits after bullion reached an over two-month high in the previous session. The metal fell by 0.5% to $4,330.37 per ounce at 0103 GMT.

The drop came despite mild U.S. inflation data, which undermined expectations of a September Federal Reserve rate hike. Producer prices were unchanged in July as goods prices fell and services increased marginally.

Cleveland Fed President Beth Hammack reiterated her view that the U.S. central bank should raise rates immediately to restrain growth and high inflation.