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MTECHTIPS:-Gold inches down, as traders await Fed mins for rate hike indications

MTECHTIPS:-Gold inches down, as traders await Fed mins for rate hike indications

Gold futures inched down amid a stronger dollar, as investors await the release of the minutes from the Federal Open Market Committee’s July meeting on Wednesday for further indications on the timing of the U.S. central bank’s first interest rate hike in nearly a decade. On the Comex division of the New York Mercantile Exchange, gold for December delivery traded in a broad range between $1,108.80 and $1,120.50 a troy ounce before closing at $1,115.50, down 2.90 or 0.26%. Previously, gold had closed higher in seven of its 10 last sessions edging forward after touching down to 10-year lows in late July. Gold remains down approximately 1.5% over the last month of trading. Gold likely gained support at $1,082.00, the low on August 5 and was met with resistance at $1,126.30, the high from Aug. 13. Traders appeared hesitant to make any drastic moves on Tuesday ahead of the Federal Reserve’s release of the minutes from its July meeting on Wednesday afternoon. While Fed chair Janet Yellen has indicated that the FOMC could lift interest rates at some point in 2015 if the economy and labor markets continue to show improvement, the Fed has been tight-lipped as to whether lift-off will occur in September. Hours before the Fed minutes are made public on Wednesday afternoon, the U.S. Labor Department’s Bureau of Labor Statistics will issue its Consumer Price Index (CPI) report for July. Last week, Fed vice chairman Stanley Fischer expressed concern with the lack of inflation in the U.S. economy due to slower than expected growth. The Fed would like to see long-term inflation move toward its targeted goal of 2% before it starts to raise interest rates.

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