Gold Prices Slip as Investors Unwind Inflation-Fueled Rally
Gold prices are on track to end the week in the red as investors lock in profits following a rally fueled by mild US inflation data. Spot gold slipped 0.5% to $4,330.70 per ounce, while US gold futures for December delivery slid 0.7% to $4,387.40.
The metal had reached its highest point since June 5 on Thursday before settling lower. The decline is attributed to investors unwinding their positions after the inflation data reduced expectations of a near-term Federal Reserve rate hike.
Ilya Spivak, head of global macro at finance content network Tastylive, noted that 'there's not a near-term catalyst quite so potent immediately in front of us.' He added that gold may be setting up for a meaningful rally now and that taking out $4,400 could lead to a price target of $5,000 by year-end.