Gold climbs from four-month low on Fed minutes, Chinese recovery
09-Jul (Reuters) — Gold rose on Thursday as a recovery in Chinese shares cooled fears of a wider rout in the major bullion consumer, and after minutes from the Federal Reserve’s last meeting suggested caution towards a near-term increase in interest rates.
Strength in the dollar versus the euro kept a lid on gains, however.
Spot gold was up 0.5 percent at $1,164.03 an ounce at 1400 GMT, while U.S. gold futures for August delivery were flat at $1,163.50.
…Gold has been weighed down by expectations the Fed will raise U.S. interest rates for the first time in nearly a decade, lifting the opportunity cost of holding non-yielding gold while boosting the dollar.
The minutes from the Fed’s June 16-17 meeting showed the central bank continues to grapple with its plan to raise rates, in the wake of mixed economic data domestically and market turmoil abroad.
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