Plus   Neg

Gold Slips From Two-week High

Gold prices pulled back from a two-week high on Thursday as traders locked in some profits after recent gains.

The downside, however, remained limited as the dollar slipped for a second day against its rivals on the back of softer U.S. Treasury yields.

Spot gold slid half a percent to $1,419.19 per ounce, after hitting its highest level since July 3 at $1,428.40 earlier in the day.

The contract fell nearly 1.5 percent the previous day as the dollar weakened on the back of disappointing housing data. U.S. gold futures were down 0.2 percent at $1,420.10 an ounce.

Construction of new houses fell slightly in June and permits sank to the lowest level in two years, suggesting the U.S. housing market continued to struggle despite declining mortgage rates.

The dollar fell for a second day running on expectations that Fed officials will cut interest rates for the first time in a decade later this month.

The odds favor a 25 bps rate hike, but some investors are gunning for a 50 basis point cut. The Fed is widely expected to cut a total by nearly 75 basis points by the end of the year.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT