Gold prices edged lower on Thursday as investors locked in profits, after the bullion gained nearly 1% in the previous session on safe-haven buying amid concerns that an historic drop in long-term US bond yields could portend a global recession.
Spot gold was down 0.2% at $1,512.45 per ounce, as of 0732 GMT. US gold futures slipped 0.3% to $1,523. "We are seeing flight to safety, market confidence is a bit shaky. We have been seeing that the economy is showing signs of weakness and it is starting to slow in the second half of this year, which is supportive for gold," said Benjamin Lu, analyst, Phillip Futures.
"On the flip side, gold's bull run is going on for sometime, we are afraid in the short-term there might be some pullback, corrections and people locking in profits, which might create volatility in coming days." Gold, which pays no interest of its own, is often used as a hedge against political and financial risks.
Markets are anticipating US retail sales data due later in the day, which could serve as an indicator of the strength of the world's largest economy. Investors are focused on the Federal Reserve's annual symposium next week. Traders see a 66.3% chance of a 25 basis-point rate cut by the Fed this September.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.9% to 844.29 tonnes on Wednesday.
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