Gold falls, heads for weekly decline amid US interest rate cut expectations

Gold prices fell today and are heading for a weekly decline, as investors await more indications to expect the size of the potential US interest rate cut in September.

Spot gold fell 0.2% to $2,421.31 per ounce by 0402 GMT, after rising more than 1% on Thursday.

The precious metal is heading for its biggest weekly loss since June 7. It had fallen about 3% on Monday as investors adjusted their positions in conjunction with broader selling of stocks.

US gold futures also fell 0.1% to $2,460.80.

“Gold price activity was relatively stable today as investors took a breather after a volatile week,” said Tim Waterer, senior market analyst at KCM Trade.

“From a fundamental standpoint, gold is expected to benefit either from increased risk aversion or from expectations of monetary policy easing,” he added.