· Gold prices rose to their highest in two weeks on Thursday amid a muted dollar, after minutes from the U.S. Federal Reserve’s September policy meeting revealed low inflation concerns.
Spot gold was up 0.2 percent at $1,294.29 an ounce by 0338 GMT, after earlier marking its best since Sept. 27at $1295.45.
U.S. gold futures for December delivery climbed 0.6 percent to $1,296.50 per ounce.
· “Gold prices rose slightly as the market appeared to take the Fed minutes as slightly dovish. In particular, it was the comments on persistently low inflation that seemed to gain much attention. This saw the US dollar weaken slightly, increasing investor appetite for the precious metal,” ANZ analysts said in a note.
“Investors’ concerns over escalating tensions between U.S. and North Korea remain high,” ANZ analysts noted.
· If people are not too worried about the Fed’s policy, we have North Korea. Surely, geopolitical tensions are supporting prices ... we may try $1,300 next week, said Yuichi Ikemizu, Tokyo branch manager at CIBC Standard Bank.
· Spot gold may test resistance at $1,299 per ounce, with a good chance of breaking above this level and rising more towards the next resistance at $1,305, Reuters technicals analyst Wang Tao said.
· Silver edged up 0.1 percent to $17.18 an ounce.
Reference: Reuters
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