Gold remains well bid in the wake of yesterday’s more dovish than expected FOMC minutes, even as the dollar has recovered. Last week’s high at 1292.05 was pressured, but has capped the upside thus far.
Heightened concern about the lack of inflation evident in the FOMC minutes was interpreted as being dovish. However, changes in Fed funds futures have been limited thus far. A September rate hike remains off the table, while December is still a toss-up.
Initial jobless claims fell 12k last week to 232k. The Philly Fed Index fell to 18.9, which was better than expectations of 18.0. Later this morning, we’ll get July industrial production, which is expected to rise 0.3%.