Gold Retreats from Two-Month High Amid Softer Inflation Expectations
Gold prices retreated on Friday after investors locked in profits following its rally to a two-month high in the previous session. The metal's value had climbed due to inflation-driven expectations of a September Federal Reserve rate hike, but mild US inflation data undermined these predictions.
The spot gold price fell by 0.5% to $4,330.37 per ounce, while US gold futures for December delivery slid 0.8% to $4,386.80. Bullion had reached its highest point since June 5 on Thursday before settling 1.3% lower and wiping out its gains for the week.
The US producer prices were unchanged in July, with goods prices falling and services costs increasing marginally. This news bolstered market expectations that the Fed could keep interest rates unchanged next month.