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Gold Crawls Above USD1,310 Ahead Of Fed, US Data Deluge

July 29, 2014

WASHINGTON (Alliance News) - Gold prices are modestly higher Tuesday morning with traders looking ahead to the US Federal Reserve's monetary policy statement, due on Wednesday.

The Fed is widely expected to cut its asset purchases by another USD10 billion, dropping the size of the program down to USD25 billion per month.

Although the interest rate decision is a foregone conclusion, markets will be paying close attention for clues the Fed will tighten sooner than expected.

Fed Chairman Janet hinted as much when meeting with Congress earlier in the month, but so far the Fed's official statement has refrained from pushing up the timeline on rate hikes despite the improving economy.

The Fed highlights a hectic week on the economic front, as traders will also be treated to the US jobs report for July and second quarter GDP data along with a flurry of other releases.

Gold futures for December are up USD4.80 or 0.37% at USD1,310.60 an ounce.

Silver for September is up USD0.145 or 0.71% at USD20.172 an ounce. Meanwhile, copper is down USD0.011 or 0.34% at USD3.233 per pound.

Standard & Poor's is due to release the results of its S&P/Case-Shiller house price survey at 9 am ET. Economists expect a 0.4% month-over-month increase in the house price index following the 0.2% increase in the previous month. Annually, prices are estimated to increase an unadjusted 9.9%.

At 10 am ET, the Conference Board is scheduled to release the results of US consumer confidence survey for July at 10 am ET. The consensus estimate calls for an increase in the consumer confidence index to 85.5 from 85.2 in June.

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Source: Alliance News

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