Fed Fund futures are pricing in a 9% chance of a rate increase for the September, while the odds of an increase in December fell to 46%, down from 53% just a day earlier. Gold has found support from the weaker greenback, however the enthusiasm could be tempered by uninspiring economic data in the US and overseas. Japan’s flat GDP growth and weaker retails sales in the US have cast doubt over global economic growth, which limits Gold’s potential as an inflation hedge,” according to OptionsExpress.
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Total gold demand, which includes usage in jewelry manufacturing and the industrial sector, for the first half was 2,335 metric tons, the second highest on record.
Preliminary data also revealed inflows into gold continued unabated at the start of the second half, with an additional 80 metric tons added in July.
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Tom Lydon’s clients own shares of GLD.