Gold Prices Stabilize as Rate Hike Expectations Fading
Gold prices stabilized on Friday after pulling back from a two-month high, as investors booked profits following a rally fueled by softer U.S. inflation data and fading expectations for a Federal Reserve rate hike in September.
The precious metal had surged to its highest point since June 5 on Thursday, but spot gold was little changed at $4,351.45 an ounce after the contract fell 1.3% in the previous session. U.S. gold futures for December delivery fell 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 Federal Open Market Committee meeting minutes may trigger fresh volatility for spot gold, even as traders keep an eye on global oil benchmarks.