Global Gold Prices Fall Again After Hitting Two-Month High

Global gold prices fell by more than 1% on Thursday as investors took profits after bullion climbed to a two-month high following the release of US inflation data.

Spot gold had risen earlier in the session to $4,449.39 an ounce, its highest level since June 5. However, by 12:58am EDT on Friday, the price had fallen 1.2% to $4,354.58 an ounce.

Gold futures in the United States also declined 1.1% to $4,420.40 an ounce.

The latest US inflation data came largely in line with market expectations, easing concerns that the Federal Reserve could raise interest rates at its next meeting. However, the sharp rise in gold prices prompted investors to lock in profits, putting renewed downward pressure on the precious metal.

Bob Haberkorn, senior market strategist at StoneX, said $4,500 an ounce remains a major resistance level for gold. He noted that the price had approached the level twice before retreating, making traders increasingly cautious whenever gold moves close to that threshold.

Meanwhile, regulatory filings showed that the Bank of Korea had invested $250 million in US-listed gold exchange-traded funds (ETFs) as of the end of June.

Other precious metals also declined in global markets. Spot silver fell 1.2% to $64.51 an ounce, while other major metals also recorded losses.