Gold held modest gains on Wednesday, after minutes from the Federal Reserve's September meeting showed several voting policymakers judged an interest rate hike would be warranted "relatively soon" if the US economy continued to improve. The minutes of the September 20-21 meeting, however, showed the depth of the divide on how much longer they should allow the labour market and inflation to improve before raising rates.
Spot gold was up 0.2 percent at $1,255.42 an ounce by 2:51 pm EDT (1851 GMT), hovering above last week's four-month low at $1,241.20. US gold futures settled down 0.2 percent at $1,253.80, prior to the release of the minutes. "Markets seem to be just a bit relieved to find little to suggest that the Fed would be ready to move as early as November which, in truth, would burnish their apolitical bona fides," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.
"US Treasury yields are marginally lower which has helped encourage a few value buyers in gold near day's lows." In other precious metals, spot platinum fell as low as $934.50 an ounce, a six-month low, and later pared gains to fall 0.6 percent at $939.49 an ounce. Palladium rose 0.2 percent to $648 after touching $643.22, its lowest since July 19.
Silver gained 0.6 percent at $17.54.
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