Gold prices rise as profit-taking subsides

Gold bars

Gold prices rose on Friday after hitting their lowest level since April at the end of Thursday's session as US inflation data led investors to profit taking.

Gold futures for August delivery edged up 0.27% to $2,324.30 per ounce at 8:54 am Makkah time.

Gold spot prices also rose 0.20% to $2,308.83 per ounce.

Silver futures for July delivery moved 0.20% higher to $29.13. Platinum spot prices added 0.46% to $957.15.

Profit-takings increased after data showed that the US annual consumer price inflation cooled slightly in May, contrary to forecasts to stabilize at the same pace, despite steadying on a monthly basis in line with estimates.

The US consumer price index (CPI), a broad inflation gauge that measures a basket of goods and services costs across the US economy, inched 3.3% higher during the 12-month period ended in May, versus a 3.4% hike in the April reading.

"Gold has been the 'asset of choice' in financial markets, with an undercurrent of central bank buying and speculative flows sending the price to higher highs on a regular basis," said Tim Waterer, chief market analyst at KCM Trade.