MTECHTIPS:-Gold tests 28-month high, as Dollar remains in free fall

MTECHTIPS:-Gold tests 28-month high, as Dollar remains in free fall

Gold surged on Tuesday, soaring more than $10 an ounce to test 28-month highs, as the dollar slumped to its lowest level since late-June and inflation remained relatively weak, potentially delaying the timing of the Federal Reserve's latest interest rate hike. On the Comex division of the New York Mercantile Exchange, Gold for December delivery traded between $1,353.80 and $1,374.15 an ounce before settling at $1,372.25, up $12.65 or 0.93% on the session. Gold has now closed higher in six consecutive sessions. Since opening the year around $1,075 an ounce, Gold has soared approximately 30% year to date and is on pace for one of its strongest years in a decade. Gold likely gained support at $1,337.50, the low from July 20 and was met with resistance at $1,391.40, the high from March 14, 2014. On Tuesday morning, the U.S. Bureau of Economic Analysis (BEA) said Personal consumption expenditures (PCE) rose by 0.1% in June, slightly below consensus estimates of a 0.2% increase following a gain of 0.2% over the previous month. The gains are reflected by an uptick in spending for gas, electricity and healthcare services, which were partially offset by a reduction in spending in new vehicles. Over the last 12 months, the PCE Price Index has increased by 0.9% -- remaining unchanged from the year-over-year gains exhibited in May.

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