Gold rallies on FOMC indecision on tapering timelines

GOLD prices are set to close the week and month on a buoyant note, after investors cheered US Federal Reserve chairman Jerome Powell's comments suggesting the central bank was unlikely to hike rates anytime soon.

The yellow metal rose to its highest level in over two weeks after the Fed's dovish statement. Spot and gold futures rose to their highest level since July 15, with the Comex Gold for December delivery closing on July 29 US$1.50 shy of the mid-July high of US$1,839 an ounce. Undecided investors sitting on the fence and uncertain of the immediate trend, flocked to the yellow metal, buying the dips below US$1,800.

With the continuous spread of Covid-19 and its Delta variant threat to the nascent economic recovery globally, other central banks are expected to similarly hold their horses on increasing interest rates.