London — Gold rose for a second consecutive day on Thursday after Federal Reserve officials hinted that US interest rates could rise more slowly than expected, while palladium hit a new 16-year high, supported by strong industrial metals markets. The minutes of the Fed’s July 25-26 policy meeting showed some policymakers wished to halt further rate increases until it is clear the trend of soft inflation is transitory. Gold is sensitive to rising interest rates because they push up bond yields, raising the opportunity cost of holding non-yielding bullion, and tend to strengthen the dollar, in which gold is priced. The dollar and bond yields fell after the minutes were released but have recouped some losses. Spot gold was up 0.3% at $1,286.99 an ounce at 9.10am GMT after rising 0.9% the previous day. US gold futures for December delivery were 0.8% higher at $1,292.70 an ounce. Commerzbank analyst Carsten Fritsch said US President Donald Trump’s decision to disband two high-profile bus...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.