Shafaq News/Gold prices eased on Monday and hovered around key $2,500 level, as traderslocked in profits following bullion's climb to an all-time peak in the previoussession on expectations of a U.S. interest rate cut next month.
Spot goldwas down 0.2% at $2,502.78 per ounce, as of 0317 GMT, and U.S. gold futuresedged 0.2% higher to $2,541.80.
Enthusiasmover a likely interest rate cut by the U.S. Federal Reserve in Septemberpropelled bullion to an all-time high of $2,509.65 on Friday. This coupled withincreased geopolitical tensions and robust central bank-buying have sentbullion over 20% higher so far this year.
"Goldhas been chasing the psychological $2,500 level for several months, and nowthat it has been reached, we are seeing some natural profit-taking occur,"said Tim Waterer, chief market analyst, KCM Trade.
Last week,strong U.S. retail sales print and lower-than-expected unemployment claims,along with mild inflation data, restored confidence in the world's largesteconomy.
Traders areconfident that the U.S. Fed will cut rates next month and the focus is now onthe size of the reduction. They are pricing in a 75.5% chance of a25-basis-point cut, according to CME FedWatch tool, opens new tab.
"Traderswill be looking towards Jerome Powell's tone and language at Jackson Hole (onFriday) to fill in some of the blanks in this regard," Waterer added.
The marketwill also look out for minutes of the Fed's July policy meeting on Wednesdayfor further cues.
Holdings ofSPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rosenearly 1% on Friday. COMEX gold speculators also raised net long position by34,197 contracts in week ended Aug. 13, data showed.
SeveralChinese banks have been given new gold import quotas from the central bank,anticipating revived demand despite record high prices.
Elsewhere,spot silver rose 0.2% to $29.08 per ounce, platinum gained 0.4% to $957.75 andpalladium shed 0.4% to $947.13.
(Reuters)