Gold Prices Slip as Investors Take Profits from Recent Rally

Gold prices slipped on Friday as investors locked in profits from the metal's recent rally. The price of spot gold fell by 0.5% to $4,330.70 per ounce, while US gold futures for December delivery slid 0.7% to $4,387.40.

The decline comes after gold reached its highest point since June 5 on Thursday before settling lower. The non-yielding metal got a boost from mild US inflation data and an unexpected drop in July nonfarm payrolls last week, which reduced expectations of a near-term Federal Reserve rate hike.

According to Ilya Spivak, head of global macro at finance content network Tastylive, 'There is some episodic and more speculative capital that's maybe taking a bit of profit in gold, because there's not a near-term catalyst quite so potent immediately in front of us.'

The market is now pricing only a 33% chance of a rate hike in September, down from about 55% last week. Lower interest rates make gold more attractive relative to yield-bearing assets.