Gold Prices Tumble as Inflation Data Fails to Rev Up Rate Hike Expectations

Gold prices are headed for their first weekly loss in weeks after investors locked in profits following mild US inflation data. The data propelled gold to its highest level in more than two months, weakening the case for a near-term Federal Reserve rate hike.

Bullion is down 0.5% at $4,326.75 per ounce as of 0336 GMT, while US gold futures for December delivery slid nearly 1% to $4,382.50.

Ilya Spivak, head of global macro at finance content network Tastylive, said some investors may be taking profits in gold due to the lack of a near-term catalyst. However, he noted that gold could set up for a meaningful rally if it takes out $4,400 and potentially reach $5,000 by year-end.