Gold retreats from two-month high as traders await US PPI
Gold (XAU/USD) comes under selling pressure on Thursday, erasing all the gains recorded in the previous day after hitting a fresh two-month high of $4,449 during Asian trading hours. At the time of writing, the precious metal trades around $4,386, down 0.52% on the day.
Gold prices fell from a recent two-month high of $4,449, following a volatile trading day. The precious metal traded around $4,386, slipping 0.52% on that day. The downturn was primarily due to profit-taking, as traders appeared hesitant to chase prices higher amid economic uncertainty. Softer US economic data, such as relatively steady Consumer Price Index (CPI) and weaker-than-anticipated Nonfarm Payrolls (NFP) figures for July, reduced the likelihood of an imminent interest rate hike from the Federal Reserve (Fed).
Consequently, front-end US Treasury yields declined for the third day in a row, which could keep Gold's downside limited in the near term. Market attention is now shifting to the US Producer Price Index (PPI) set for release at 12:30 GMT, which may shed additional light on underlying inflationary pressures at factory levels.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
