London — Gold held steady on Thursday as the dollar weakened after minutes from a US Federal Reserve meeting suggested the central bank could take a more cautious approach to interest rate increases. Fed policy-makers agreed at the meeting that they should hold off from raising rates until it is clear that a recent US economic slow-down is only temporary, though most said an increase is coming soon. Higher interest rates tend to boost the dollar and push bond yields up, increasing the opportunity cost of holding non-yielding bullion, thereby pressuring gold prices. Spot gold was virtually flat at $1,257 an ounce at 1.54pm GMT, clinging to Wednesday’s 0.6% gain, while US gold futures were up 0.3% at $1,256. Capital Economics analyst Simona Gambarini said that gold’s resilience could falter in the coming weeks, citing indications in the Fed minutes that tighter monetary policy is on the cards. Federal fund futures implied that traders believe there is an 83% probability that the Fed w...
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