Commodities

Gold futures advanced on expectations that rate hikes in the U.S. will be gradual

Gold futures

The price of gold was up on Monday as expectations of an interest rate hike in the stateside eased off. This is driven by the released economic figures in the U.S. came out weaker than anticipated, which also pushed their currency to its 10-month lows.

Looking on prices, U.S, gold futures edged up by 0.2 percent to finish at $1,230.20 an ounce for its August delivery and spot gold as well was 0.2 percent higher to trade at $1,230.98 an ounce.

Retail sales slipped for two straight months and consumer prices for the month of June was unchanged, according to the U.S. government last Friday. The data on domestic demands and soft inflation in the nation have weakened the on-going opinions for the U.S. Federal Reserves to incite an interest rate hike. Traders have diminished their bets on the possibilities of a hike this December. An interest rate hike will limit the demand of the yellow metal to investors because it lifts the opportunity costs of owning gold.

Daniel Hynes, an Analyst from ANZ, said on the day that the investor sentiment for the bullion has been continuously improving for the past week, especially the soft U.S. data released also on the previous week. He added that gold is ready for one more rally.

Meanwhile in other precious metals, palladium was down by 0.3 percent at $855.72 an ounce. Platinum advanced by 0.4 percent at $919.25 an ounce, it notched is best level in two weeks at 924.40. Spot silver was 0.6 percent higher at $16.04 on the day.

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