New York: Gold held onto gains from the past three days as the dollar retreated after traders read the minutes from July’s Federal Reserve meeting as showing US interest rates will stay low.
Bullion for immediate delivery was little changed at $1,347.96 an ounce by 9:57am in London, according to Bloomberg generic pricing. It’s up 27 per cent this year partly on weak or negative world interest rates, which help gold because the metal doesn’t offer a yield.
The dollar retreated against all major peers bar the Brazilian real as the Federal Open Market Committee minutes showed a growing consensus that inflation risks are low.
“Gold received another boost from the dollar weakness that followed the FOMC minutes yesterday,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said by email. “However, the gold rally is looking increasingly tired with the market in need of a deeper correction.”
Odds of an increase in borrowing costs in December fell to 49 per cent from 51 per cent a day earlier, according to futures prices compiled by Bloomberg. Some policymakers have previously suggested at least one rate increase this year, with New York Fed President William Dudley indicating a move could come as soon as the Fed’s Sept. 20-21 gathering.
Miners advanced, with the FTSE/JSE Africa Gold Mining Index gaining 1.9 per cent, and Gold Fields Ltd and Sibanye Gold Ltd. climbing at least 2 per cent. Top platinum producer Anglo American Platinum Ltd gained 0.7 per cent, with the recovering price of the metal supportive, according to Bloomberg Intelligence analyst Eily Ong.
