Gold drops over 1.0pc as investors book profits

Gold slid over 1 per cent on Thursday, falling to its lowest level in two weeks, as investors squared positions to focus on U.S. economic data that could offer additional insights into the timing of the Federal Reserve's potential interest rate cuts, reports Reuters.
Spot gold fell 1.2 per cent to $2,369.29 per ounce by 1302 GMT, having touched its lowest since July 10. US gold futures dropped 1.9 per cent to $2,368.80.
"Much like the pivot we are witnessing in the stock market, market participants may be shifting from gold to other areas... while profit-taking may also be playing a role," said Zain Vawda, market analyst at MarketPulse by OANDA.
Stock markets were locked in a multi-trillion-dollar tailspin on Thursday due to a slump in global tech stocks.
"I think from an institutional perspective the profit-taking could be attributed to repositioning and reallocations to other sectors. A significant correction has been long overdue," Vawda added.
The markets are awaiting the personal consumption expenditure (PCE) data on Friday to calibrate their expectations of the timing of rate cuts by the Fed.
Markets see a 100 per cent chance of a rate cut in September, according to the CME FedWatch Tool. Non-yielding bullion's appeal tends to shine in a low-interest rate environment.
Spot silver shed 4.8 per cent to $27.6 per ounce on the day, hitting a 11-week low. Platinum eased 1.5 per cent to $933.68, near a three-month low, and palladium slipped 2.9 per cent to $905.32.