Gold Holds Advance on Signs Fed May Keep Zero Rates for Longer
Bloomberg - Feb 18, 2015
Gold held a rebound from the lowest level in six weeks after minutes from the Federal Reserve’s January meeting signaled its willingness to keep interest rates near record lows for longer.
Bullion for immediate delivery added as much as 0.2 percent to $1,215.08 an ounce and was at $1,213.18 by 8:21 a.m. in Singapore, according to Bloomberg generic pricing. Prices fell to $1,197.72 on Wednesday, the lowest since Jan. 5, before closing 0.2 percent higher.
Fed officials, while considering risks to the outlook to be “nearly balanced,†pointed to a strengthening dollar, international flash points from Greece to Ukraine, and slow wage growth as weakening the case for the first rate rise since 2006, according to a record of their Jan. 27-28 gathering released Wednesday. Officials also expressed concern that removing their vow to be “patient†on raising rates would lock them into a timetable for tightening, the minutes showed.
“The Fed is leaning towards delaying an interest rate rise for longer as they await further evidence of continued growth and signs of inflation picking up,†Australia & New Zealand Banking Group Ltd. wrote in a note today.
