MANILA, Aug 20 (Reuters) - Gold scaled a one-month peak
early on Thursday after minutes from the Federal Reserve's
policy meeting last month signaled that a hike in U.S. interest
rates in September may be unlikely.
Fed officials worried that lagging U.S. inflation and a weak
global economy posed too big a risk to commit to "liftoff" on
rates. ID:nL1N10U1HJ
FUNDAMENTALS
* Spot gold XAU= touched $1,134.40 an ounce in early
deals, its loftiest since July 17, and was flat at $1,134.01 by
0043 GMT.
* U.S. gold for December delivery GCcv1 rose half a
percent to $1,133.70 an ounce.
* Only one Fed policymaker was ready to vote for a rate hike
at the central bank's July 28-29 policy meeting, while some
others "viewed the economic conditions for beginning to increase
the target range for the federal funds rate as having been met
or were confident that they would be met shortly," according to
minutes from the meeting released on Wednesday.
* Many analysts had been betting on a rate hike when Federal
Reserve officials next meet in September given sustained
strength in the world's largest economy. But some thought
policymakers might take a gradual approach in lifting rates
after China's surprise devaluation of its yuan last week.
* A potential delay in a rate increase offers upside
potential for non-interest bearing gold that had been out of
favour versus the dollar.
* U.S. consumer prices rose only slightly in July as airline
fares recorded their biggest drop since 1995. ID:nL1N10U0KX
* Greece has suspended the mining operations of Canada's
Eldorado Gold ELD.TO in northern Greece, saying the company
violated contract terms, in a setback to one of the top foreign
investment projects in the country. ID:nL5N10U2I3
* South Africa's Chamber of Mines declared a dispute with
Solidarity Union over collapsed wage talks and referred the
matter to a government mediator. ID:nL5N10U3K8
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* The dollar was on the defensive against the euro and yen,
having pulled back sharply after Federal Reserve meeting minutes
suggested that policymakers were in no hurry to raise interest
rates. USD/
* Concerns about slowing growth in China pressured Asian
shares and oil prices. MKTS/GLOB
DATA AHEAD (GMT)
0600 Germany Producer prices Jul
1230 U.S. Weekly jobless claims
1400 U.S. Existing home sales Jul
1400 U.S. Leading index Jul
1400 U.S. Philly Fed business index Aug