Weak economic data signal Fed may delay rate rise till 2016
Strength in gold market is going to stay for a while: Sumitomo
Gold is starting to shed its reputation as a dead asset, and bulls can thank signs the U.S. economy is starting to sputter for the boost.
The metal was little changed at $1,184.18 an ounce by 10:28 a.m. in London after climbing above its 200-day moving average on Wednesday for the first time in about five months. Prices touched the highest since June 22 yesterday and investors bought the most through gold-backed funds since August.
A gauge of U.S. inflation fell by the most since January and retail sales missed forecasts, increasing traders’ bets the Federal Reserve will delay raising rates until next year. That’s good news for gold, which loses out when borrowing costs rise because the metal doesn’t pay yields, unlike competing assets.