Gold Retreats After Record Peak

Gold prices fell by more than two percent today (Friday) as the dollar rose and amid profit-taking following the yellow metal reaching an all-time high earlier this week amidst growing expectations for a rate cut in the United States in September. Spot gold dropped 1.9 percent to $2399.13 per ounce. The highest all-time price for gold was $2483.60 on Wednesday. U.S. gold futures fell 2.2 percent to $2401.30. The pressure on gold increased as the dollar rose 0.2 percent against major currencies today, as well as the increase in yields on benchmark 10-year U.S. Treasury notes. Earlier this week, Federal Reserve Chairman Jerome Powell stated that recent inflation readings "somewhat increase confidence" that the pace of rate hikes is returning to the central bank's goal sustainably. These remarks suggest that a rate cut may not be far off, and the allure of non-yielding gold increases with a rate reduction.