Gold Prices Retreat as Investors Take Profits

Gold prices fell on Friday as investors took profits after reaching a two-month high in the previous session. The metal rose to its highest level since June 5, but then retreated 1.3% and wiped out its weekly gains. Spot gold fell 0.5% to $4,330.37 an ounce, while U.S. gold futures for December delivery dropped 8% to $4,386.80.

The decline came after inflation data showed that U.S. producer prices were unchanged in July, with lower goods prices offsetting a slight increase in the cost of services. This reinforced market expectations that the Federal Reserve may leave interest rates unchanged next month.