Gold inches up after Fed leaves door open to Sept rate hike

29-Jul (Reuters) – Gold moved up a shade on Wednesday, but remained near last week’s 5-1/2-year low, after a U.S. Federal Reserve statement raised uncertainty about the timing of a possible interest rate hike, leaving the door open for September.

Following a two-day policy meeting, Fed officials said they felt the economy had overcome a first-quarter slowdown and was “expanding moderately” despite a downturn in the energy sector and headwinds from overseas.

The statement said the U.S. economy and job market continue to strengthen.

“(The) market can’t seem to decide whether the Fed has moved marginally farther away from a September hike,” said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.

“Will need some FOMC members’ spin in the coming days for a bit more clarity.”

[source]

PG View: Let me see if I can predict the “spin”: The hawks will say a rate hike is warranted before year-end. The doves will say further patience is needed.

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