Gold rose on Wednesday, rebounding above a six-week low after minutes from the Federal Reserve's latest meeting showed policymakers were concerned about raising interest rates too soon. Minutes from the Federal Open Market Committee's January meeting expressed concern that raising interest rates too soon could pour cold water on the US economic recovery. Policy makers also fretted over the impact of dropping "patient" from the central bank's interest rate guidance.
Spot gold rose 0.1 percent to $1,209.56 an ounce at 3:07 pm EST (2007 GMT), after earlier falling to a six-week low at $1,197.56. US gold futures for April delivery settled down $8.40, or 0.7 percent, at $1,200.20 an ounce. Platinum prices also rose after sliding to their lowest in 5-1/2 years. "This should put a short-term bottom in gold confirming what some in the market have suspected, that the Fed would wait to feel inflation's bayonet in their sternum before raising rates," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.
"The market remains relatively positive that in the end there will be an agreement between the euro zone and Greece, so they don't see that as an extreme tail risk," ABN Amro analyst Georgette Boele said. Silver was down 0.2 percent at $16.46 an ounce. Spot platinum rose 0.1 percent to $1,172.24 an ounce, while spot palladium was down 0.3 percent at $776.90 an ounce.