Gold Prices Fall on Profit-Taking After Recent Rally
Gold prices fell on Friday, August 14, as investors booked profits after the recent rally. COMEX gold was trading at $4,374.30 per ounce, down $46.10 or 1.04% from the previous close of $4,408.20 an ounce.
The decline followed a sharp correction in India on Thursday (August 13), with gold prices in New Delhi falling ₹2,800 to ₹1.57 lakh per 10 grams according to the All India Sarafa Association.
Analysts noted that expectations around softer US inflation had already been reflected in bullion prices following the release of July's Consumer Price Index data. Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the in-line US CPI reading had been largely priced into bullion during the recent rally.
He added that the market would now look for fresh triggers from the US dollar, crude oil prices, and Federal Reserve rate expectations. Gold has gained around 10-11% in dollar terms over the past month, supported by expectations of lower yields, weaker US employment data, continued Chinese gold purchases, and a softer US dollar.