Gold moderately cheaper to new weeks low move caused by increased speculation about the potential increase in Fed rates this month.

Despite recent disappointing economic data "hawkish" comments from Fed officials suggest the possibility of a hike in September. Recall, on Friday, the Federal Reserve Bank of Boston President Rosengren noted that raising interest rates would be a "reasonable option" to avoid overheating the economy. However, today the head of the Federal Reserve Bank of Minneapolis Kashkari said that at the moment to stimulate the economy are necessary instruments of fiscal policy, as well as regulatory measures. "We need to support economic growth, do not think that only the monetary policy can do it" - said Kashkari. Meanwhile, the Federal Reserve Bank of Atlanta President Lockhart said that the Central Bank is getting closer to a further increase in interest rates, but declined to speculate about when this might happen. Investors are now waiting for another speech by the Fed's Lael Brainard. Some suggest that Brainard will be more sympathetic to the idea of ​​a rate hike. According to the futures market, the likelihood of a hike is 21% in September.

Commodity Futures Trading Commission data showed that hedge funds and money managers increased their net long position in gold contracts on the COMEX to 9-week high.

In addition, it became known that the stocks of the world's largest exchange-traded fund SPDR Gold Trust fell on Friday by 1.12 percent, to 939.94 tonnes.

The cost of the October futures for gold on COMEX fell to $ 1324.3 per ounce.