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Gold set for longest run of gains in six weeks on Fed rate view
[SINGAPORE] Gold climbed for a fourth straight day as the dollar retreated after minutes from July's Federal Reserve meeting signalled that US interest rates are poised to stay lower for longer.
Bullion for immediate delivery advanced as much as 0.5 per cent to US$1,355.06 an ounce and traded at US$1,352.98 at 8:57 am in Singapore, according to Bloomberg generic pricing. The metal is 28 per cent higher this year after rising every day this week, the longest stretch of gains since July 6.
Gold has increased this year partly on the back of weak or negative interest rates globally, proving beneficial to bullion which doesn't offer interest or yields.
The Fed minutes released Wednesday showed that most officials saw little risk of an uptick in inflation, regardless of what they do with rates. Odds of an increase in borrowing costs in December fell to 48.5 per cent from 51 per cent a day earlier, according to futures prices compiled by Bloomberg.