Gold Prices Slump as Investors Lock in Profits Ahead of Key Inflation Milestone

Gold prices plummeted by 1.2% on Thursday after investors chose to lock in profits, pushing the metal's price below $4,500 per ounce.

The spot gold landed at $4,354.58 per ounce, while US gold futures closed at $4,420.40.

The decline followed fresh US inflation data, which showed that the producer price index remained flat in July and consumer inflation eased slightly to 3.4%.

This caused traders to reassess their expectations of a Federal Reserve rate hike next month, with the probability dropping from 40% to 35%.