Gold rose more than 1 percent on Thursday as the Bank of Japan held off from expanding monetary stimulus, boosting the yen versus the US dollar, and after the Federal Reserve signalled it was in no rush to tighten monetary policy. The Fed left interest rates unchanged after its latest meeting on Wednesday and, while keeping the door open to a hike in June, showed little sign it was in a hurry to tighten policy amid an apparent slowdown in the US economy.
Spot gold was up 1.6 percent at $1,266.50 an ounce at 2:43 pm EDT (1843 GMT), a one-week high, while US gold futures for May delivery settled up 1.3 percent at $1,265.50 an ounce. "The Fed in the end was dovish when a slightly more hawkish message was expected, so that was supportive for gold, while the Bank of Japan clearly wrong-footed the market," Societe Generale analyst Robin Bhar said.
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