Gold prices log modest drop amid investor profit-taking

Gold bars 

Gold prices fell slightly today, Sept. 19, as investors took profits that the yellow metal made yesterday following the Federal Reserve's decision to start a round of monetary easing.

Bullion for December delivery shed 0.10% or $2.70, to $2,595.90 per ounce at 08:55 am Makkah time, after ending yesterday’s trading at $2,598.60 apiece.

Spot prices, on the other hand, grew 0.46%, or $11.69, to $2,570.60 per ounce, after touching a fresh record peak of $2,592.39 an ounce during yesterday's session.

Elsewhere, silver futures for September delivery climbed by 0.86% to $30.95 per ounce, as platinum spot prices ticked 0.77% higher to $980.91 an ounce.

The decline in the performance of gold futures came amid investors possibly taking profits after the Fed’s decision yesterday to cut interest rates by 50 basis points (bps), making the first step towards monetary easing after more than four years of tightening. This is especially since bullion prices have hit record levels several times recently.

“A 50-bp [rate cut] is good for gold ... Gold is in a bull market; it is likely to move higher,” Tai Wong, a New York-based independent metals trader, was quoted as saying by Reuters.

This came as the US dollar index, which gauges the greenback's strength against a basket of six currencies, nudged up by 0.31% to 100.91 points.