(RTTNews) - The price of gold advanced to a four-month high Thursday morning as the U.S. dollar was moving lower after the minutes from the recent Federal Reserve meeting raised hopes for further stimulus measures.
Minutes from the recent Federal Reserve meeting released overnight showed that the central bank is losing patience with the pace of the fragile U.S. economic recovery. Many members of the Federal Reserve said additional monetary policy accommodation is likely warranted unless the economy improves substantially, potentially opening the door for another round of quantitative easing measures at the next meeting in September.
Gold for December delivery, the most actively traded contract, gained $24.60 to $1,665.10 an ounce. Yesterday, gold ended marginally lower as investors awaited the minutes of the Federal Open Market Committee policy meet. The dollar continued to fluctuate while the euro weakened after Greece requested additional time to enforce the strict austerity measures proposed by its lenders.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,281 98 tons from 1,278.96 tons.
Meanwhile, the U.S. dollar was lingering near a two-month low versus the euro and the Swiss franc, while slipping back to a three-month low against sterling. The buck was surrendering recent gains versus the yen.
In economic news, the euro zone private sector contracted for the seventh successive month in August, flash estimate from Markit Economics showed. The composite output index rose marginally to 46.6 from 46.5 in July. The reading was forecast to remain unchanged at 46.5. The Purchasing Managers' Index for manufacturing rose to 45.3, a four-month high, from 44 in July. The expected reading was 44.2.
Meanwhile, data from Destatis showed that the German economy expanded for the second straight time during the quarter ended June as initially estimated. Gross domestic product rose 0.3 percent sequentially in the second quarter, but down from the 0.5 percent growth seen in the previous quarter.
The prices of silver and platinum were moving higher in morning deals.
In economic news from the U.S., the Labor Department is due to release its jobless claims report for the week ended August 18 at 8:30 a.m ET. Economists expect claims to increase to 362,000 from 350,000 in the previous week.
Later during the session, the Commerce Department will release its new home sales report for July The consensus estimate calls for new homes sales of 362,000 compared to a seasonally adjusted annual rate of 350,000 in June.
