Gold rose to a 3 and a half month high on Wednesday as weak economic data from USA and China supported the speculations that Fed will not raise rates
this year.The probability the Fed
proceed to interest rate hike after the sluggish data on the US economy is very
small.
The spot price of gold reached $ 1,188.20 per troy ounce - the highest level
since June 23. Futures on precious metal for delivery in December recorded an
increase of 1.2 percent to 1179.80. Among other precious metals, silver increased by 1.7 percent to $ 16.16 per
troy ounce. Platinum climbed 0.8 percent to $ 994.75. Palladium rose 2.8 percent to $ 698.50 per troy ounce.
Amid the general rise of precious metals, the dollar fell, reaching 3 and a half
week low against a basket of major currencies. The published report yesterday showed U.S. retail sales barely increased in September and the producer prices recorded their biggest decline in
eight months. Consumer inflation in China slowed in September, while producer prices continue to fall -
5.9 percent on an annual basis, which is the 43rd consecutive month of
deflation.
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