Gold held near a 3-1/2-month high on Thursday, following a four-day rally, as sluggish economic data from China and the United States stoked speculation the Federal Reserve will not raise rates this year. Spot gold steadied at $1,185.10 an ounce by 0639 GMT, after climbing to $1,190 in the previous session, its highest since June 22. Silver hit a 3-1/2-month high of $16.18, while platinum climbed to a five-week high of $1,002.50.
Investors believe the sluggishness in the US economy amidst a weak global economic backdrop may cause Fed policymakers to delay the first rate increase in nearly a decade to 2016. Gold, as a non-yielding asset, tends to benefit from ultra-low rates. "Soft US retail and inflation combined with disinflationary China data undercut the rationale for a rate rise in some investor's view and helped propel gold," said HSBC analyst James Steel. "But more than that, we continue to sense changing attitudes to gold from investors, with recent positive comments from some fund managers," he said.
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