Gold retraces from two-week peak as investors lock in profits

Gold prices pulled back from a two-week high to trade lower on Thursday, as some investors took advantage of the last session's gain to book profits.

Spot gold was down 0.3% at $1,422.68 per ounce, as of 0350 GMT, after hitting its highest since July 3 at $1,428.40.

It rose nearly 1.5% in the previous session as the dollar slipped after weaker-than-expected U.S. housing data increased prospects for an interest rate cut by the Federal Reserve.

U.S. gold futures were steady at $1,423.70 an ounce.

"A slightly weaker dollar and a clear preference from investors over the last 24 hours drove safe-haven assets higher," said Michael McCarthy, chief market strategist, CMC Markets.

"From gold's point of view, it approached a key resistance level around $1,430, and having failed to push through it, it looks like short-term trading investors are taking advantage of gains."

The dollar index was down 0.2% against a basket of major currencies on Thursday. It climbed to a one-week peak in the previous session on robust U.S. retail sales, but nudged lower as Treasury yields fell in the wake of weak U.S. housing market data and concerns about the unresolved U.S.-China trade conflict.

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