By Rahul Paswan
(Reuters) – Gold prices slipped to its lowest in over two weeks on Thursday as profit-taking kicked in after gold’s recent rally, while traders awaited U.S. economic data that could offer more cues on when the central bank will cut interest rates .
Spot gold fell 1.4% to $2,364.57 per ounce by 1521 GMT, having touched its lowest since July 9. U.S. gold futures dropped about 2.2% to $2,363.70.
“There’s definitely some profit taking going on triggered by the weakness in the US equity markets that was more than just a sell off,” said Marex analyst Edward Meir. [.N]
Gold hit an all-time high of $2,483.60 last week on growing optimism for an interest-rate cut from the U.S. 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 U.S. 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 jewellery demand.
Elsewhere, spot silver shed 3.8% to $27.89 per ounce on the day, hitting a 11-week low.
Platinum eased 1.4% to $934.95, near a three-month low, and palladium slipped 2.3% to $911.63.
(Reporting by Rahul Paswan in Bengaluru; Editing by Nick Zieminski)
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