Gold Just Hit a Two-Month High Then Fell Back. Here’s What’s Driving the Swings.

TLDR

• Gold fell from a two-month high as investors booked profits after a sharp rally
• Traders now see only a 32% chance the Fed hikes rates in September
• Bitcoin dropped 0.4% to $63,140 as Middle East tensions weighed on risk appetite
• Oil rose sharply, with Brent crude up 1.6%, as Strait of Hormuz talks stalled
• U.S. 30-year Treasury yields hit their highest level since 2001 at a fresh auction

Gold prices slipped Friday after hitting a two-month high earlier in the week. Investors moved to lock in gains following a strong run that pushed prices above $4,400 an ounce.

Spot gold was roughly flat at $4,349.71 an ounce in early trading Friday. Gold futures fell 0.4% to $4,404.65. New York gold futures were down 0.8% to $4,385.90, putting gold on track for a modest weekly loss despite gaining ground over the previous two weeks.

Gold crossed its 100-day moving average for the first time since April earlier this week. However, it has since slipped back below that level, a sign that profit-taking has picked up.

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