London — Gold rose for a second day on Thursday after Federal Reserve officials hinted that US interest rates could rise more slowly than expected, while palladium was lifted to a 16-year high 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 nonyielding 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 0.2% at $1,284.68 an ounce at 1.45pm GMT after rising 0.9% the previous day. US gold futures for December delivery gained 0.6% to $1,290.60 an ounce. Commerzbank analyst Carsten Fritsch said US President Donald Trump’s decision to disband two high-profile business advisory councils...
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