MTECHTIPS;-Gold advances on renewed geopolitical tensions

MTECHTIPS;-Gold advances on renewed geopolitical tensions

MTECHTIPS-Gold prices edged higher on Thursday, as the dollar weakened, after subdued inflation data curbed investor expectations of a rate hike later this year while renewed geopolitical tensions lifted sentiment on the precious metal. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose $9.23, or 0.70%, to $1,323.26 a troy ounce. Gold resumed its climb higher, following a two-day consolidation, as data showed consumer spending fell short of expectations while inflation increased at its slowest pace in nearly two years, curbing investor expectation that the Federal will hike its benchmark rate later this year. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3%, the Commerce Department said on Thursday, falling short of expectations of a 0.4% increase. In the 12 months through July, the core PCE price index increased 1.4% after advancing 1.5% in June. That was the smallest year-on-year increase since December 2015. The duo of reports comes a day ahead of nonfarm payrolls, expected to show that the U.S. economy created roughly 180,000 jobs in July. Gold is sensitive to moves lower in both bond yields and the U.S. dollar – A lower dollar makes gold cheaper for holders of foreign currency while a fall in U.S. rates, reduce the opportunity cost of holding non-yielding assets such as bullion

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