Gold Price Resumes Rebound After Fed Minutes

New York (July 9)  Gold resumed rebound from four-month low on Thursday after Fed minutes for June meeting signaled caution about risky situation in Greece and China, thereby endorsing haven demand on the metal.

The yellow metal hit a high of $1166.43 an ounce and a low of $1155.90, while currently trading around $1163.97.

Fed minutes released on Wednesday cited concerns from policymakers about the weakness in U.S. consumer spending.

The future of Greece remains uncertain after eurozone finance ministers offered Greece a deadline this week to submit a proposal, where there are risks that Europe may expel Greece out of the monetary union.

Greek banks remained closed for a second week, amid a sharp drop in liquidity, noting that a “Grexit” would roil markets and eventually weigh on the United States.

China’s Shanghai Composite plunged 5.9 percent on Wednesday, to complete a drop of 37 percent over the previous few weeks, on worries of slowdown in growth in the world’s second-biggest economy.

Investors will look for further clues about the Fed’s outlook on Friday when Fed Chairwoman Janet Yellen speaks.

The dollar rose on Thursday to hover around 96.71, compared to the session’s opening at 96.38, according to the dollar index that tracks the green currency’s movements against a basket of six currencies.