Gold dips on Monday after Friday’s record high

Gold prices fell on Monday, hovering around the key $2,500 per ounce level after reaching an all-time high in the previous session. The precious metal’s surge was fueled by expectations of an upcoming interest rate cut by the US Federal Reserve.

Spot gold fell slightly with spot gold at $2,502.78 per ounce at 0317 GMT and US gold futures at $2,541.80.

Expectations of a US Federal Reserve interest rate cut in September pushed gold to a record high of $2,509.65 on Friday. Geopolitical tensions and strong central bank purchases have boosted gold prices by over 20 per cent this year.

“Gold has been chasing the psychological $2,500 level for several months, and now that it has been reached, we are seeing some natural profit-taking occur,” said Tim Waterer, chief market analyst, KCM Trade.

Investor interest in gold remains strong, with holdings in the SPDR Gold Trust rising nearly one per cent on Friday. Additionally, COMEX gold speculators increased their net long position by 34,197 contracts in the week ended August 13.

In other markets, silver prices increased slightly to $29.08 per ounce, while platinum rose to $957.75 and palladium fell to $947.13.

Attribution: Reuters

Subediting: M. S. Salama