Gold prices fell on Friday as investors sought to take profits after the metal rose to its highest level in more than two months in the previous session, following inflation data that weakened expectations of an interest rate hike by the US Federal Reserve in September.
Spot gold fell 0.5% to $4,330.37 an ounce, while US gold futures for December delivery declined 0.8% to $4,386.80.
Gold climbed on Thursday to its highest level since June 5 before retreating 1.3%, erasing its weekly gains.
US producer prices were unchanged in July, as goods prices declined while the cost of services rose slightly. The data reinforced market expectations that the Federal Reserve may leave interest rates unchanged next month.
The Labor Department report released on Thursday came after data showed moderate consumer price inflation last month.
On the geopolitical front, Washington threatened Thursday to continue its naval blockade of Iran indefinitely, increasing economic pressure on Tehran amid stalled ceasefire talks.
Among other precious metals, spot silver fell 0.8% to $63.92 an ounce.
Platinum declined 1% to $1,700.60, while palladium fell 0.3% to $1,303.25. Both metals touched their lowest levels since August 4.
Reuters
