27.07.201708:03:00UTC+00Gold Rallies As Fed Acknowledges Low Inflation

Gold futures were higher Thursday morning, touching a two-month peak after the Federal Reserve failed to specify when it will start reducing its $4.5 trillion balance sheet.

In a statement hinting at concerns about stubbornly low inflation, the Fed also demurred on when to expect another rate hike. The Fed was less dismissive about soft inflation data being 'transitory', opening the possibility of no rate hikes this year.

With the dollar weakening by the day, gold has been on the rise in July.

September gold was up $12 at $1268 an ounce this morning ahead of some crucial economic data.

U.S. durable goods orders for June will be released at 8.30 am ET. Economists are looking for growth of 3.5 percent, compared to a decline of 1.1 percent a year ago.

Trade balance figures are due at the same time, along with jobless claims.