Gold prices decline amid profit-taking

Gold prices fell by about 1% today, Thursday, as investors took profits ahead of US economic data that may provide more indications about when and how much the Federal Reserve (the US central bank) will reduce interest rates this year.

Gold fell in instant transactions by 0.9% to $2,377.29 per ounce by 02:17 GMT. US gold futures also fell 1.6% to $2,376.70.

“When you look from the perspective of market fundamentals, there are no factors pressuring gold,” said Kelvin Wong, chief market analyst for the Asia-Pacific region at OANDA. So it looks like we are seeing some profit taking. From a technical perspective, prices may fall further,” quoted by Reuters.

Markets are awaiting the US GDP reading scheduled to be released at 12:30 GMT and the personal consumer spending data, which is the US Central Bank’s preferred measure of inflation, scheduled to be published tomorrow, Friday, in search of more indicators on interest rates.

As for other precious metals, silver fell in spot transactions by 2.8% to $28.18 per ounce. Platinum fell 0.8% to $940.40. Palladium fell 1.5% to $918.63.