Fed Minutes Relief, Touching Gold Peak Level 1-Month

The price of gold recorded its biggest daily rally in a week and touched the 1-month highs on Wednesday after minutes of the US Federal Reserve meeting last month signaled a rate hike chances are smaller in September, which triggered a sell-off of US dollar. Decline in global stock markets also boosted the appeal of bullion as a safe haven.

Minutes of the Fed's July meeting showed policy makers are still concerned about the slow rate of inflation, while a weak global economy pose too great a risk to commit tighten policy. However, the US labor market improvement still remains support for a rate hike in the near future.

Expectations of rising US interest rates have become a major factor depressing commodity prices in recent months. The level of interest rates will increase the costs for storing commodities, making it less attractive to investors.