Gold prices fell during the early trading hours on Monday, hovering around the $2500 mark, as traders took profits after the metal reached an all-time high in the previous session, driven by expectations of a potential U.S. interest rate cut next month.
The optimism surrounding a possible interest rate cut by the Federal Reserve in September pushed gold to its highest ever level of $2509.65 on Friday. This, coupled with rising geopolitical tensions and strong central bank purchases, has driven the metal up more than 20% so far this year.
Tim Waterer, Senior Market Analyst at KCM Trade, said, "Gold had been chasing the psychological level of $2500 for several months, and now that it's been reached, it's natural to see some profit-taking."
Last week, strong U.S. retail sales, better-than-expected jobless claims, and moderate inflation data helped restore confidence in the world’s largest economy
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