Gold Near Two-Week High on Speculation U.S. Rates Will Stay Low


BESTPROFIT FUTURES (10/04) – Gold held near a two-week high after the release of U.S. Federal Reserve minutes that played down forecasts by some of the bank™s own policy makers that interest rates might rise faster than they previously predicted.

Bullion for immediate delivery traded at $1,313.13 an ounce at 8:41 a.m. in Singapore from $1,311.80 yesterday, when the metal completed a two-day advance that™s the longest streak in a month, according to Bloomberg generic pricing. Prices erased a drop to reach $1,315.18 yesterday, the highest since March 26.

The minutes of the March meeting, at which monthly bond buying was cut for a third time, showed that several policy makers said projections for an interest-rate rise might be overstated. Gold rose 9.3 percent this year, rallying from the worst annual drop in more than three decades, driven in part by unrest in Ukraine and concern the U.S. recovery may be slowing.

Gold for June delivery rose 0.6 percent to $1,313.10 an ounce on the Comex in New York. Assets in the SPDR Gold Trust, the largest bullion-backed exchange traded fund, were unchanged yesterday after falling to 806.48 metric tons on April 8, the least since March 7.

The Fed has reduced monthly bond-buying by $10 billion at each of the past three meetings, while keeping its target for overnight lending between banks in a range of zero to 0.25 percent since 2008.

Silver for immediate delivery rose 0.3 percent to $19.935 an ounce, rebounding from a drop yesterday. Platinum added 0.1 percent to $1,443.88 an ounce, climbing for a third day. Palladium was at $782.50 an ounce from $782.35.

Copy Source : Bloomberg