Gold prices fell on Friday as traders locked in profits following bullion’s climb to an over two-month high on Thursday. Spot gold was down 0.5% at $4,330.37 per ounce by 0103 GMT, while US gold futures for December delivery fell 0.8% to $4,386.80.
Gold had touched its highest level since June 5 on Thursday, but subsequently reversed course and settled 1.3% lower. The move wiped out its gains for the week and highlighted the volatility surrounding the precious metal as investors reassess the US interest-rate outlook.
Fresh US economic data is central to that outlook. Producer prices were unchanged in July as goods prices declined while services costs increased marginally. The report came a day after data showed consumer inflation remained relatively mild, strengthening expectations that the Federal Reserve may keep rates unchanged next month.
However, the outlook remains uncertain. Cleveland Fed President Beth Hammack has maintained that the US central bank should raise interest rates immediately to contain growth and inflation. Her comments underline the differing views among policymakers as markets attempt to determine the Fed’s next move.
Geopolitical risks are another important driver for bullion. The United States has threatened to maintain its naval blockade of Iran indefinitely amid stalled ceasefire talks, keeping uncertainty around the Middle East elevated. Any escalation could strengthen demand for gold as a safe-haven asset, while signs of de-escalation could weigh on prices.
The liveblog will also track continuing central-bank demand for gold. A US SEC filing showed that the Bank of Korea held 679,765 shares of the SPDR Gold Trust worth roughly $250.4 million at the end of June. The investment marks its first disclosed gold holding since 2013.
Silver is also being closely watched. Spot silver fell 0.8% to $63.92 an ounce, while platinum dropped 1% to $1,700.60 and palladium slipped 0.3% to $1,303.25.
Follow this liveblog for the latest Gold Rate Today and Silver Rate Today, along with key global market developments, Fed signals, economic data and geopolitical factors influencing precious-metal prices.
