Gold prices fell over 2% this week, ending an eight-week winning streak due to profit-taking. ETF outflows and quiet trade war news weakened buying momentum, briefly pushing gold below $4,100. A softer-than-expected CPI report on Friday boosted optimism for another Fed rate cut, stabilizing gold above $4,100. Next focus is on the FOMC decision next week.

Despite a week-over-week decline of over 2%, gold prices remain supported above $4,000/oz. Speculative buying has slowed, with investors possibly locking in profits at near all-time highs. Trading themes remain steady, but updates have slowed leading up to the FOMC meeting next week. Uncertainty over trade wars and Fed actions have lessened, contributing to gold’s price drop.

Gold prices dipped below $4,100 this week as traders took profits amid a lack of new positive momentum. Gold ETF outflows contributed to the price drop. However, a modest inflation report on Friday eased fears, boosting confidence in another Fed rate cut. Gold rebounded to around $4,125/oz by Friday afternoon.

US equities rallied on news of modest inflation, leading gold to bounce back from a low of $4,050. Continued macro data vacuum expected next week due to the government shutdown. FOMC interest rate decision next Wednesday will be closely watched for clues on future monetary policy amid the shutdown’s impact on the economy.

Read more at Yahoo Finance: Gold Slips From Record Highs as Traders Take Profits Ahead of Fed Decision