Gold Prices Retreat as Fed Rate Hike Bets Fade

Gold prices retreated on Friday (August 14) as the market's momentum waned. Investors began taking profits after gold reached its highest level in more than two months, while expectations of a Federal Reserve rate hike in September declined.

According to Saxo Bank analyst Ole Hansen, 'gold is trading lower for a second day as profit-taking starts to emerge following the strong rally.' He added that moderate US inflation data and reduced expectations for further rate hikes have largely been priced into the market.

The spot price of gold fell 0.1% to $4,344.24 per troy ounce, while US gold futures for December delivery dropped 0.4% to $4,400.40 per troy ounce.