Gold prices end in red as US dollar rises

Gold bars

Gold prices finished in the red today, Aug. 28, pressured by a stronger US dollar as investors awaited the release of key US inflation data for clues about the size of the widely-anticipated September rate reduction.

Bullion for December delivery fell 0.60%, or $15.10, to $2,537.80 per ounce, as the yellow metal plummeted for the second consecutive session.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, added 0.6% to 101.14 points at 09:48 pm Makkah time.

Investors unanimously expect a Federal Reserve interest rate cut during its policy meeting on Sept. 17-18, by no less than 25 basis points, the CME FedWatch Tool showed.

Markets are awaiting the second reading of the US GDP change rate and unemployment benefits data tomorrow, a day before the announcement of the Federal Reserve's preferred inflation measure, or the Personal Consumption Expenditures (PCE) Price Index.