Gold Prices Plummet After Reaching Two-Month High on Mild Inflation Data
Gold prices retreated on Friday after hitting a two-month high in the previous session. Investors locked in profits as mild US inflation data undermined expectations of a September Federal Reserve rate hike.
The spot price of gold fell 0.5% to $4,330.37 per ounce, while US gold futures for December delivery slid 0.8% to $4,386.80. Bullion had climbed to its highest point since June 5 on Thursday before settling 1.3% lower and wiping out its gains for the week.
US producer prices were unchanged in July as goods prices fell and services increased marginally, bolstering market expectations that the Fed could keep interest rates unchanged next month. Cleveland Fed President Beth Hammack reiterated her view that the US central bank should raise rates immediately to restrain growth and too-high inflation.