Play store
Gold prices fell in the international market after recently reaching their highest level in more than two months, with investors taking profits following the release of US inflation data, Reuters reported.
Spot gold fell around 0.7% to nearly $4,373 per ounce by 2:38pm on Thursday (August 13). Earlier, prices had risen nearly 1% in Asian trading to their highest level since June 5.
The latest rise in gold prices was partly driven by new US inflation data. The country’s Consumer Price Index rose 3.4% year-on-year in July, down from 3.5% in June and in line with economists’ expectations.
The softer inflation figures reduced concerns that the Federal Reserve might raise interest rates at its September meeting. According to the CME FedWatch tool, the probability of a rate hike fell to 36% from around 55% a week earlier.
Analysts said the latest decline may not mark the end of gold’s longer-term upward trend. Gold could regain momentum if expectations for lower interest rates strengthen and geopolitical uncertainty persists.
