Gold Prices Retreat from Two-Month High Amid Profit-Taking
Global gold prices retreated from their two-month high after investors took profits following the release of US inflation data. Spot gold had reached $4,449.39 an ounce earlier in the session but fell by 1.2% to $4,354.58 an ounce by 12:58am EDT on Friday. This decline was not limited to spot gold, as gold futures in the United States also declined 1.1% to $4,420.40 an ounce.
The latest US inflation data came in largely as expected, easing concerns that the Federal Reserve could raise interest rates at its next meeting. However, the sharp rise in gold prices prompted investors to lock in profits, putting downward pressure on the precious metal. According to Bob Haberkorn, senior market strategist at StoneX, $4,500 an ounce remains a major resistance level for gold.
The Bank of Korea had invested $250 million in US-listed gold exchange-traded funds (ETFs) as of the end of June, according to regulatory filings. Other precious metals also declined in global markets, with spot silver falling 1.2% to $64.51 an ounce.