The price of gold rose to a one-week high on Thursday after minutes from the US Federal Reserve’s November meeting indicated it could slow the pace of interest rate hikes soon.
As of 1016 GMT, spot gold was up 0.5% at $1,757.91 an ounce, and US gold futures were up 0.7% at $1,757.10.
Minutes from the Fed’s November 1-2 policy meeting showed that a “substantial majority” of Fed policymakers agreed that it would “probably soon be appropriate” to slow the pace of rate hikes.
The dollar index held losses after falling 1% overnight, making bullion cheaper for foreign buyers.
“Investor expectations are moving in a dovish path for the Fed,” said Carlo Alberto De Casa, an outside analyst at Kinesis Money, adding that the dollar’s weakness was also a positive catalyst for the gold metal.
High rates this year have curbed gold’s traditional status as a hedge against inflation and other uncertainties, as they translate into a higher opportunity cost to hold the non-interest-bearing asset.
In other precious metals, spot silver was up 0.2% at $21.56 an ounce; platinum was down 0.5% at $991.30; and palladium gained 0.6% to $1,892.25.
Market activity was probably tempered by the Thanksgiving holiday in the United States.
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