London — Gold prices hit a three-month high on Thursday after the minutes of the latest Federal Reserve policy meeting further dampened expectations of an interest rate hike in March, lowering US bond yields and stalling upward momentum in the dollar. Spot gold was on track for its biggest daily gain since February 6, rising 0.9% by 4.11pm GMT to $1,249.05 an ounce, its highest since November 11. US gold futures rose 1.3% to $1,250. "The dollar’s backed off, bond yields have backed off, and that’s given a bit of support for gold," said Robin Bhar at Societe Generale. A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion. Higher interest rates would lift yields. Gold had been trapped in a range of around $1,220-$1,240 since early February, with unease over the European and US political outlook supporting demand for bullion as a safe haven while the prospect of rising interest rates kept a lid...
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