Gold ascends as greenback slumps after dovish Fed minutes
On Thursday, gold prices pushed higher during European trade, reversing overnight losses because the major US currency slumped after minutes of the Federal Reserve's July policy gathering prompted market players to push back hopes for the next American rate lift.
In New York, December delivery gold futures went up 0.64%, trading at $1,357.45 per troy ounce, having dropped 0.6% on Wednesday.
Odds for a near-term rate lift faded after the minutes of the Fed’s July policy gathering, published on Wednesday, disclosed that policymakers were still divided over the necessity to lift rates in 2016.
As the minutes states, some voting members expect that an American interest rate soar will be required soon, though there’s general agreement that more data is required before such a move.
The greenback tumbled to 7-week minimums against the Japanese yen and the common currency on Thursday amid reduced hopes for a Fed rate lift before the end of the year.