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Gold Hits 2-month Low As Dollar Firms On Hawkish Fed Minutes

August 21, 2014

WASHINGTON (Alliance News) - Gold futures were lower Thursday morning as the minutes of the Federal Reserve's most recent policy meeting hinted at fierce debate over when to raise US interest rates.

Some Fed voters want to hike rates sooner than forecast thanks to improvements in the jobs market and risks associated with ultra-easy monetary policy.

Incoming data since that meeting at the end of July has been relatively cloudy on the pace of the recovery.

Markets will be paying close attention to top bankers at the Fed's annual Jackson Hole symposium on Friday, including the Fed Chair Janet Yellen and European Central Bank President Mario Draghi.

Gold futures for December are down USD14.20 or 1.10% at USD1,281.00 an ounce, after touching USD1,279.20, the lowest level in two months and fifth session of losses in a row.

The dollar touched its highest in almost a year versus major rivals, weighing on gold.

Silver for September is down USD0.147 or 0.75% at USD19.350 an ounce. Meanwhile, copper is down USD0.021 or 0.67% at USD3.156 per pound on report showing a weak Chinese factory activity in August.

Traders are looking ahead to the weekly jobless claims from the US Labor Department, due at 8:30 am ET. At 9:45 am ET, Markit is due to release the results of its preliminary US manufacturing purchasing managers' survey for August.

The existing home sales data from the National Association of Realtors and the results of Philadelphia Federal Reserve' region manufacturing survey are due at 10 am ET.

Around the same time, the Conference Board will release its leading economic indicators index for the US

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Source: Alliance News

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