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MTECHTIPS:-Gold surges to 5-week high on delayed Fed rate hike bets

MTECHTIPS:-Gold surges to 5-week high on delayed Fed rate hike bets

Gold prices rallied to a five-week high on Thursday, after the minutes of the Federal Reserve’s July meeting fanned hopes that the central bank could delay raising interest rates till the very end of 2015. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose to an intraday peak of $1,141.80 a troy ounce, the strongest level since July 17, before trading at $1,137.70 during European morning hours, up $9.80, or 0.87%. A day earlier, gold climbed $11.00, or 0.98%, to close at $1,127.90 after prospects for a rate hike in September by the Federal Reserve appeared dim after the release of July meeting minutes. The minutes showed Fed officials continued to express broad concerns about lagging inflation and the weak global economy. The minutes added that policymakers were concerned about “recent decreases in oil prices and the possibility of adverse spillovers from slower economic growth in China.” The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.50 early Thursday, little changed on the day after falling sharply on Wednesday. Traders now looked ahead to U.S. data later in the session for further indications on the strength of the economy and the timing of an interest rate hike. The U.S. is set to release data on initial jobless claims, existing home sales and manufacturing activity in the Philadelphia region later Thursday.

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