Gold climbed to its highest in a month during Wednesday’s afternoon trading following the release of downbeat US data, ahead of the release of the Federal Reserve’s July meeting minutes.
The spot gold price was last at $1,128.0/1,128.2 per ounce, up $10.50 on Tuesday’s close and its highest since July 20. Trade has ranged from $1,116.3 to $1,129.5 so far.
In today’s data, the CPI and core CPI month-over-month in July were up 0.1 percent, both below the forecast of 0.2 percent.
Attention is now switching to the release of the Fed minutes from the July 28-29 meeting, which will be scrutinized for clues on whether the US central bank might raise interest rates next month. However, participants said that the minutes are for a meeting held before the Chinese yuan devaluation which rocked the markets last week.
At the moment, the Fed Fund Futures regard the probability of a rate hike in September as being less than 50 percent.
“If the market prices in a higher probability as a result, the gold price could come under renewed pressure, though the kind of sharp price fall seen in July is no longer likely, given the now better market sentiment and buying which would then be expected,” Commerzbank said.
In other data today, out of the eurozone, the region’s current account in June was 25.4 billion, above the consensus of 19.2 billion.
Japan’s trade deficit widened as exports slowed, while its all industries activity index climbed 0.3 percent.
In the other precious metals, silver was last at $15.17/15.22, up 32 cents. Platinum at $1,003/1,008 was $11 higher and palladium at $602/607 climbed $7.
(Editing by Martin Hayes)
The post Gold climbs to one-month high after disappointing US data, awaits Fed minutes appeared first on The Bullion Desk.
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