Gold Slips From Two-month High On Profit Taking
(RTTNews) - Gold prices inched lower on Thursday, after having surged to a two-month high earlier on signs of cooling U.S. inflation and increased bets the Federal Reserve would leave its policy rate unchanged at its September meeting.
Spot gold fell 0.6 percent to $4,384.03 an ounce after hitting a peak of $4,449.71 earlier. U.S. gold futures were down 0.6 percent at $4,441.51.
The U.S. dollar held steady after the annual rates for both U.S. headline and core inflation eased slightly from June, easing pressure on the Federal Reserve to raise interest rates.
Overnight data showed consumer prices inched up 0.1 percent month-on-month and 3.4 percent annually in July, matching expectations.
Core inflation, which excludes volatile food and energy prices, rose 0.2 percent on a monthly basis and 2.5 percent year-on-year.
Traders now await the U.S. producer price index later today and readings on retail sales and consumer sentiment on Friday for additional clues on the Fed's rate trajectory.
On the geopolitical front, the United States and Iran remain deadlocked over efforts to permanently end their five-month-old war.
U.S. President Donald Trump reiterated that the United States is in control of the Strait of Hormuz and there is nothing Iran can do about it.
After reports emerged that the United States and Iran have agreed to extend a 60-day ceasefire brokered by Pakistan, a senior Iranian official reportedly said there had been no progress in talks to revive a June interim agreement and define a time frame to implement it.
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Australian Market Sharply Lower
