· Gold prices finished with a gain on Wednesday as news that two White House business advisory groups have disbanded, fueling haven demand and prompting a late-session turn higher for the yellow metal.
· Gold gained further ground in electronic trading following minutes from the U.S. Federal Reserve’s July meeting, which were released after gold’s settlement and pointed to a central bank hamstrung by sluggish inflation.
· “The acceleration in gold’s gains toward the regular session close was definitely due to the wave of resignations by CEOs from [President Donald Trump’s] business council,” Brien Lundin, editor of Gold Newsletter. “However, the minutes from the Fed’s last meeting also had a dovish tone, and this helped gold to rise even further.”
· December gold GCZ7, +0.77% rose $3.20, or 0.3%, to settle at $1,282.90 an ounce.
· Prices spent the bulk of the session trading lower, but started to move up with just over half an hour left in the trading session as more chief executive officers announced their departures from the business group.
· Prices for gold continued to climb in electronic trading. About a half-hour following the Fed minutes, it was at$1,288.50.
· Most senior Federal Reserve officials wanted to wait until an “upcoming” meeting to unveil a long-awaited selloff of the central bank’s $4.5 trillion in bondholdings, hinting at an announcement in September, according to minutes of the Fed’s meeting in July.
The Fed had been on track to raise rates one more time this year, but now a majority of Wall Street investors believe the bank will hold off until early 2018.
Overall, economic data have been mixed with reports on inflation, the Fed’s main focus as it looks to normalize interest-rate policy, indicating that it is running below the central bank’s 2% target.
· Silver for September delivery SIU7, +1.30% extended its earlier gains, tacking on 22.6 cents, or 1.4%, to $16.94 an ounce, giving back some of the 2.4% loss it suffered a day earlier.
Reference: Market Watch
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