Gold retreats as traders take profit after two-month high

ERBIL, Iraq — Gold prices fell on Tuesday as investors booked profits following a two-month high in the previous session, when softer U.S. producer price data weakened expectations of a Federal Reserve interest rate hike in September. Spot gold dropped 0.5% to $4,330.37 per ounce by 01:03 GMT, while December U.S. gold futures slipped 0.8% to $4,386.80 per ounce. Gold had touched its highest level since June 5 on Monday before reversing course and closing 1.3% lower, erasing its weekly gains. Data released Monday by the U.S. Labor Department showed producer prices were unchanged in July, with falling goods prices and only a modest rise in service costs. The figures reinforced market expectations that the Fed may hold rates steady at its September meeting. Other precious metals also declined. Silver fell 0.8% to $63.92 per ounce, platinum lost 1% to $1,700.60, and palladium eased 0.3% to $1,303.25. Platinum and palladium touched their lowest levels since August 4.