Bengaluru — Gold inched up on Thursday, holding near a multimonth peak after the US Federal Reserve paused its monetary tightening cycle, denting the dollar and putting bullion on track for its fourth consecutive monthly gain. Spot gold was up 0.2% to $1,322.26/oz at 11.17am GMT. Prices rose to their highest since May 11 at $1,323.34 on Wednesday. US gold futures rose almost 1 percent to $1,322. Spot gold has risen 3.1% in January. “Supporting gold is the double whammy of lower dollar and the [Fed decision on] US interest rates,” said ABN Amro analyst Georgette Boele. Late on Wednesday, the Fed offered no alterations to its interest rate outlook, instead stating that the case for further rate increments had “weakened” in recent weeks. Gold tends to rise on the expectation of lower interest rates, which reduce the opportunity cost of holding nonyielding bullion. On the technical front, “resistance for short term should be $1,330. If gold exceeds that, the market can expect to see $1,...
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