Gold Rises as Fed Minutes Boost Bets Rates Won’t Rise in June

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Gold prices advanced after minutes from the Federal Reserve’s last meeting showed that officials last month didn’t expect to raise rates at their next gathering in June.

Many policy makers thought economic data available in June wouldn’t be robust enough to warrant tightening, according to the minutes released Wednesday of the April 28-29 session.

“People are interpreting these minutes as being more dovish than hawkish, and that is supporting gold,” Chris Gaffney, the president at EverBank World Markets in St. Louis, said in a telephone interview. “Some people are relieved that that the rate hike has been pushed back. Also, the Fed has made it clear it will continue to remain data dependent, so gold will continue to be data-sensitive.”

The metal swung between year-to-date gains and losses more than 10 times in 2015, gyrating as traders tried to gauge the timing of U.S. interest-rate increases. Higher rates drive investors to favor assets that pay interest, including new bonds, curbing the appeal of gold, which generally offers returns only through price gains.

Gold for immediate delivery rose 0.2 percent to settle at $1,209.80 an ounce, according to Bloomberg generic pricing.

The precious metal climbed in the past two weeks, partly on speculation that a faltering economic recovery would spur the Fed to keep borrowing costs near a record low. The central bank’s benchmark rate has been near zero percent since 2008.

Gold futures for June delivery added 0.2 percent to settle at $1,208.70 an ounce on the Comex. Silver also gained.

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