Gold Prices Steady After Two-Month High Amid Profit-Taking and Rate Hike Uncertainty
Gold prices steadied on Friday after retreating from their highest point in over two months. Investors took profits following a rally driven by softer U.S. inflation data and reduced expectations for a Federal Reserve rate hike in September.
The spot gold price remained unchanged at $4,351.45 an ounce as of 1113 GMT, having fallen 1.3% the previous session. U.S. gold futures for December delivery dropped 0.3% to $4,407.70 per ounce.
According to Han Tan, chief market analyst at Bybit, 'Gold is barely holding onto a weekly advance, as markets indulge in some profit-taking following bullion's mid-week spike to a two-month high.'
The coming week's Federal Open Market Committee meeting minutes may trigger fresh volatility for spot gold. Traders are keeping an eye on global oil benchmarks and the 31% chance of a rate hike in September, down from about 44% a week earlier.