Los Angeles CA, August 21 (Tangible Investments) - by James O’Dell - The Gold price slipped to a two month low in overnight trading after gaining $0.80 or 0.06 percent on Wednesday to close at $1,296.00 an ounce, when the dollar got a boost from the slightly hawkish tone of the U.S. central bank's July minutes. The price of Silver rose $0.04 or 0.21 percent to close at $19.49 an ounce, while the Gold/Silver ratio inched up to 66.63.
The minutes revealed a debate between Fed officials at their July meeting over when to increase interest rates. Amid signs of a slowly improving job market and rising inflation, policymakers decided that more evidence was needed before pulling the trigger on a rate increase. "It's too early to suggest rates may rise sooner than expected," said Omer Esiner, of Commonwealth Foreign Exchange Inc.
The annual Jackson Hole Economic Symposium for central bankers and economists begins on Thursday and investors are awaiting Yellen’s speech on Friday, titled simply “Labor Markets.” Important clues as to the direction of monetary policy have been gleaned from several earlier Jackson Hole symposiums.
“Gold is historically highly sensitive to monetary policy comments, as seen from its price reaction to previous Chairman Ben Bernanke’s speeches...Subsequently, perceivably dovish policy comments by Ms. Yellen at the Jackson Hole meeting would provide a boost for Gold prices, while perceivably hawkish policy comments would drag bullion down, ” said Jim Steel, of HSBC.
In the Middle East, kidnapped American journalist James Foley was executed by the Islamic State of Iraq and al-Sham, (ISIS) after first demanding $130 million from Foley's employer for his return. President Obama said the U.S. would be both "vigilant" and "relentless" in bringing his killers to justice, and that could mean an extended stay in Iraq for the U.S..
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