Gold Retreats as Inflation Data Meets Expectations
Gold prices declined by over 1% on Thursday as investors locked in their gains following US inflation data that met expectations. The data tempered hopes for a Federal Reserve rate hike next month, causing gold to retreat from its two-month highs.
The spot price of gold fell 1.2% to $4,354.58 per ounce by 12:58 am EDT (1658 GMT). It had earlier touched its highest level since June 5 at $4,449.39 before dipping slightly.
Bob Haberkorn, senior market strategist at StoneX, pointed out that gold tends to struggle around the 4,500-level resistance point. Traders are jittery in this area, and any slight pullback can cause significant selling pressure.
The US Producer Price Index remained unchanged in July due to a decline in goods prices offsetting an increase in services costs. This indicates that inflationary pressures may persist, which could impact the Fed's decision on rate hikes.