Gold hits over 2-week low as investors book profit; US data in focus

Gold prices slipped to their lowest in over two weeks on Thursday as profit-taking kicked in after gold’s recent rally, while traders awaited US economic data that could offer more cues on when the central bank will cut interest rates.

Spot gold fell 1.8% to USD 2,355.22 per ounce by 1744 GMT, having touched its lowest since July 9. US gold futures settled about 2.6% lower at USD 2,353.50.

“There’s definitely some profit taking going on, triggered by the weakness in the US equity markets that was more than just a selloff,” said Marex analyst Edward Meir.

Gold hit an all-time high of USD 2,483.60 last week on growing optimism for an interest-rate cut from the US Federal Reserve in September.

Former New York Fed President Bill Dudley said the Fed should cut rates next week in a Bloomberg column on Wednesday, citing recent employment data.

Markets see a 100% chance of a rate cut in September, according to the CME FedWatch Tool. Non-yielding bullion’s appeal tends to shine in a low-interest rate environment.

Traders now await the US personal consumption expenditure (PCE) data – the Fed’s preferred inflation gauge – due on Friday.

“We’ve been on a steep rise in the gold and silver market as of late… so a combination of long liquidation and profit taking from the recent runs exacerbated the selling pressure,” said David Meger, director of alternative investments and trading at High Ridge Futures.

Meanwhile, China’s net gold imports via Hong Kong slumped 18% in June from the previous month, Hong Kong Census and Statistics Department data showed on Thursday, as the recent surge in gold prices weighed on jewelry demand.

Elsewhere, spot silver shed 4.2% to USD 27.77 per ounce on the day, hitting an 11-week low.

Platinum eased 1.4% to USD 934.85, near a three-month low, and palladium slipped 2.8% to USD 907.08.

(Reporting by Rahul Paswan in Bengaluru; Editing by Nick Zieminski)