Gold Increases in New York Before U.S. Fed Minutes

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Gold rose in New York before minutes from the U.S. Federal Reserve’s June meeting that traders will study for clues to the timing of higher borrowing costs. Palladium climbed to the highest since February 2001.
Investors are adding to bets the Federal Reserve will raise borrowing costs next year after the government that U.S. employers added 288,000 workers in June, compared with the 215,000 projected by a Bloomberg News survey of economists. The Federal Open Market Committee tomorrow will release minutes of the Fed’s June 17-18 meeting. The benchmark 10-year Treasury note yield fell two basis points to 2.59 percent, making gold more attractive as an alternative asset.
“Market could be prepositioning for the Fed’s FOMC minutes tomorrow,” Bart Melek, an analyst at TD Securities in Toronto, said by e-mail. “We could argue that the drop in the 10-year Treasury yield below 2.6 percent may have been the reason for some of the move up today, along with the somewhat higher greenback.”
Gold for August delivery rose 0.5 percent to $1,323.80 an ounce by 8:42 a.m. on the Comex in New York. Bullion for immediate delivery increased 0.2 percent to $1,322.76 an ounce in London, according to Bloomberg generic pricing.
The net-long position in gold rose 20 percent to 136,929 futures and options contracts in the week to July 1, according to U.S. Commodity Futures Trading Commission data. That’s the highest since March 18 and four times higher than at the start of the year.
Palladium for September delivery increased as much as 0.8 percent to $876 an ounce, the highest for a most-active contract since February 2001. Silver futures climbed 0.8 percent to $21.185 an ounce and platinum for October delivery rose 0.8 percent to $1,506.90 an ounce.
Source: Bloomberg
Source:Bullion Bulletin

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