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Gold rallies as investors push back Fed rate hike expectations

CommoditiesAug 17, 2017 03:16AM ET
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© Reuters. Gold rallies on dovish Fed outlook

Investing.com - Gold prices rose sharply on Thursday, climbing back toward their highest level in more than two months after minutes from the Federal Reserve's July meeting hinted at a delay in further rate hikes.

Comex gold futures gained around $11.00, or about 0.9%, to $1,293.72 a troy ounce by 3:15AM ET (0715GMT), not far from a two-month high of $1,298.10 touched late last week.

Gold prices finished higher on Wednesday as news that two White House business advisory groups have disbanded prompted a late-session turn higher for the yellow metal.

Gold gained further after the minutes from the Fed's last policy meeting showed policymakers were increasingly wary of recent softness in inflation and could delay a rate hike.

Futures traders are pricing in about a 40% chance of a rate hike by the end of the year, according to Investing.com’s Fed Rate Monitor Tool, down from roughly 50% before the Fed minutes.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Market players will now turn their attention to data on weekly jobless claims and the Philadelphia Fed manufacturing survey at 8:30AM ET (1230GMT) to gauge the strength of the world's largest economy and how it will impact the Fed's view on monetary policy.

Elsewhere on the Comex, silver futures jumped 15.9 cents, or around 0.9%, to $17.09 a troy ounce.

Among other precious metals, platinum advanced 0.6% at $980.50, while palladium rallied 1.3% to a 16-year high of $921.85 an ounce.

Gold rallies as investors push back Fed rate hike expectations
 

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not me
not me Aug 17, 2017 11:18AM ET
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sell
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Hiren Patel
GarasondiaHiren Aug 17, 2017 4:16AM ET
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Before us open........exit and book full profit at cmp $1290+$17.180 range today against yesterdays buy call in xau and xag @1268 and 16.660 range......see call 1sttttttt.........Its time to sell precious metals at current rate and expectation of profit booking today onwards till weekly closing.mm..........sell xau and xag at current rate $1290-1292 range and $17.180-210 range and keep sl???..and tgt1 $1280+$16.900.and tgt2 $1270+$16.600.and tgt3 $1260+$16.200.mm---tgt in next few hours
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