Gold rose on Thursday after the Federal Reserve said it would take a patient approach toward raising interest rates, boosting stock markets and commodities, though it pared early gains as the dollar strengthened against a basket of currencies. Fed Chair Janet Yellen said the Fed was unlikely to hike rates for "at least a couple of meetings," meaning April of next year at the earliest.
"(The Fed statement) does suggest that they're not going to rush into hiking rates," Capital Economics analyst Caroline Bain said. "It's our house view that there'll be a rate hike sooner rather than later, but it's also our view that rates will only rise very slowly and gradually thereafter."
Spot gold was up 0.6 percent at $1,195.11 an ounce by 2:39 pm EST (1939 GMT). It earlier rose as high as $1,212.80, after buy stops were triggered on a break of the $1,200 level. Among other precious metals, spot platinum was up 0.7 percent at $1,195.00 an ounce, while spot palladium was up 2.1 percent at $792.10 an ounce.
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