Gold gains as Fed meeting minutes confirm cautious rates outlook

[SINGAPORE] Gold rose after minutes from last month's Federal Reserve meeting showed caution in the setting of US monetary policy, curbing prospects for further rate increases and boosting the appeal of the metal.

Bullion for immediate delivery advanced as much as 0.3 per cent to US$1,226.65 an ounce and traded at US$1,224.21 at 9:41 am in Singapore, according to Bloomberg generic pricing. Prices have swung between gains and losses each day this week.

Gold has rallied in 2016 as slowing global growth clouded the outlook for the US. Minutes of the Federal Open Market Committee's March 15-16 meeting released Wednesday showed officials debated the strengthening US economy and heightened global risks. With policy makers not rushing to raise rates, gold is benefiting as it becomes more competitive against interest-bearing assets.

BLOOMBERG