Gold retains gains on hopes Fed will delay interest rate hike Commodities

Spot gold was little changed at $1,212.81 an ounce by 00:30 GMT.

• The metal closed up 0.3 percent on Wednesday, after dropping to a six-week low of $1,197.56 earlier in the session. 
• Fed policymakers expressed concern last month that raising rates too soon could pour cold water on the U.S. economic recovery, and fretted over the impact of dropping "patient" from the central bank's rate guidance. 
• The minutes from the Fed's Jan. 27-28 policy-setting meeting, released on Wednesday, show officials grappling to square solid U.S. economic growth with the weakness in international markets, as well as worrying about falling inflation expectations in the United States.
• Global equity markets advanced on Wednesday while the dollar pulled back from earlier gains following the release of the Fed minutes.
• Gold had come under pressure in recent months from expectations the Fed will raise interest rates as early as June, potentially lifting the dollar and hurting non-interest-yielding assets like bullion.
• If interest rates are kept near record lows for longer, bullion's appeal could increase.  

Share this: