MTECHTIPS;-Gold at highest level since June as markets bet on patient

MTECHTIPS;-Gold at highest level since June as markets bet on patient Fed

MTECHTIPS-Gold prices rose to the highest level since mid-June in North American trade on Thursday, as a softening in the Federal Reserve’s confidence on inflation added to expectations that policy tightening would be glacial at best. Comex gold futures were at $1,263.99 a troy ounce by 9:00 AM ET (1300 GMT), up $14.30, or about 1.2%. It touched its highest since June 15 at $1,265.14 earlier in the session. Gold prices fell for a third-straight session on Wednesday, before turning higher in post-settlement trade as the U.S. dollar weakened in the wake of the Fed’s dovish policy statement. While the Fed said it expected to start shrinking its massive holdings of bonds “relatively soon”, the central bank also noted weakness in U.S. inflation more explicitly than before. The recognition of soft inflation added to expectations that the Fed’s plan to raise interest rates a third time this year might be delayed. According to Investing.com’s Fed Rate Monitor Tool, conviction for another rate hike before the end of the year has faded, with less than 40% of market players expecting another move by December. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion

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