Gold Prices Slip as Investors Take Profits Following U.S. Inflation Data

Gold prices declined on Thursday after reaching a two-month high, as investors took profits following U.S. inflation data that reduced expectations for a Federal Reserve rate hike next month.

The spot gold price fell 0.3% to $4,395.04 per ounce by 1116 GMT, while U.S. gold futures for December delivery dropped 0.3% to $4,452.70 per ounce.

Independent analyst Ross Norman stated that 'Gold has reversed its recent rise, slipping below an important chart support at $4,387 as profit-taking set in after a stellar run.'

The U.S. consumer price index rose 3.4% in the 12 months through July, down from 3.5% in June and in line with economists' expectations.

Markets are now pricing a 36% chance of a rate hike at the Fed's September meeting, down from about 55% a week earlier, according to the CME FedWatch Tool.