GOLD FIRM BEFORE INFLATION, FED JAWBONING

Inflation

Analysts surveyed by Bloomberg say core inflation probably rose 0.2 percent in July. Should they be proven correct when the figures are published at 8:30 a.m. this morning, it would end a four-month string of below-forecast readings. Yesterday, Federal Reserve Bank of New York President William Dudley cautioned that “it’s going to take some time” for headline inflation to return to the central bank’s 2 percent target. The lack of pickup in inflation, despite low unemployment, remains a mystery.

Fed speak

Bank of Minneapolis President Neel Kashkari and Federal Reserve Bank Dallas President Fred Kaplan, both voting members of the Federal Open Market Committee, are due to speak later. Kaplan, due at 9:40 a.m. and Kashkari, at 11:30 a.m., are in favor of waiting for inflation to hit the Federal Reserve’s target before hiking rates.

Read more by Soren K.Group

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