Gold set for large monthly gains

The shiny metal is getting ready for recording the largest advance since April after reaching two-month high last on worries global recovery is sputtering.

However, today the metal is showing slight decline ahead of the release of important US data. Spot gold is trading at $1234.65 an ounce after recording a high of $1237.72 and a low of $1231.68.

Later in the day, the Fed will release minutes for August's rate decision which will provide clues for the economy's outlook and the possibility of using second round stimulus.

Last week, the Fed Chairman said policy makers will use all the available monetary weapons to prevent the economy from falling into recession again.

Yesterday, US personal income came lower than forecasts while at the end of the week eyes will be on non-farm payrolls report. The latest data from the US gave support to gold as a safe haven on expected slowdown in global growth.

But over the past few sessions gold has eased slightly on the dollar's appreciation, where gold shed $1.70 or 0.14% to close at $1236.62 an ounce yesterday; gold Price was setin London at $1235.00 per ounce inclining from $1234.50 during the AM fixing on August 27. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained unchanged at 1,298.56 the previous day.

Oil also fell today where it is currently trading at $73.55 a barrel from yesterday's closing at $74.00 affected by the drop in Asian shares today.

Among other precious metals, platinum plummeted to $1511.50 from the opening price of $1520.50, palladium edged down to $487.00 from $491.20, and silver slipped to $18.91 from $19.04, as of 08:10GMT.

The dollar index, which tracks the dollar movements against a basket of major currencies, is currently trading at 83.16 which is the day's opening ahead of the release of Chicago PMI, consumer confidence and Fed minutes.