Gold prices fell on Friday as investors took profits after the metal climbed to its highest level in more than two months in the previous session, following inflation data that weakened expectations of a Federal Reserve interest-rate hike in September.
Spot gold fell 0.5% to $4,330.37 an ounce, while U.S. gold futures for December delivery dropped 0.8% to $4,386.80.
Gold rose on Thursday to its highest level since June 5 before retreating 1.3%, wiping out its weekly gains.
U.S. producer prices were unchanged in July, as lower goods prices offset a slight increase in the cost of services.
The data reinforced market expectations that the Federal Reserve may leave interest rates unchanged next month.
The report from the U.S. Labor Department on Thursday followed news showing moderate consumer-price inflation last month.
On the geopolitical front, Washington threatened on Thursday to continue its naval blockade of Iran indefinitely, increasing economic pressure on Tehran amid stalled ceasefire talks.
Among other precious metals, spot silver fell 0.8% to $63.92 an ounce.
Platinum declined 1% to $1,700.60, while palladium fell 0.3% to $1,303.25. Both metals reached their lowest levels since August 4.
