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Gold rises ahead of FOMC minutes

Published 07/09/2014, 03:17 AM
Gold gains ahead of Fed minutes
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Investing.com - Gold futures were higher on Wednesday, as investors looked ahead to the release of the minutes of the Federal Reserve’s June policy meeting later in the day.

On the Comex division of the New York Mercantile Exchange, gold for August delivery rose to a session high of $1,327.00 a troy ounce, the most since July 3, before trimming gains to last trade at $1,324.90 during European morning hours, up 0.64%, or $8.40.

Gold futures were likely to find support at $1,309.40, the low from July 3 and resistance at $1,334.90, the high from July 1.

Also on the Comex, silver for September delivery tacked on 0.61%, or 12.9 cents, to trade at $21.14 a troy ounce.

Robust nonfarm payrolls data released last week revived speculation over when the Fed may start to raise interest rates.

However, market players believe that the central bank will stick to its dovish stance on monetary policy amid concerns over slow growth in inflation and wages.

Elsewhere in metals trading, copper for September delivery advanced 0.21%, or 0.7 cents, to trade at $3.264 a pound.

Data released earlier showed that consumer price inflation in China rose 2.3% in June from a year earlier, while producer price inflation declined 1.1%.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.

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