Silver turns positive after touching two-month low. Gold prices reversed course and turned positive on Thursday, after touching a two-month low, as the dollar retreated slightly and as Federal Reserve officials reaffirmed to keeping monetary policy loose.
Spot gold rose 0.6% to $1,874.93 per ounce as of 1:46 p.m. EDT (1746 GMT). U.S. gold futures for December settled up 0.5% at 1,876.9.
“The Fed continues to tell us that they will do whatever is required to make sure things don’t happen badly, and that certainly is a catalyst to think that there will be more accommodation, which is accretive for gold,” said Bart Melek, head of commodity strategies at TD Securities.
Fed officials had reaffirmed their low interest rate policy until the labour market recovers or inflation rises to 2%.
The dollar was down 0.1% against key rivals having touched a two-month high earlier in the session.
Bullion, however, had fallen to its lowest level since July 22 earlier.
There is the broad assumption in the financial markets that the U.S. Congress will not provide any further economic stimulus for at least the next several months, which is weighing on gold, said Jeffrey Christian, managing partner of CPM Group.
“So, the confirmation that things are getting worse economically, as you saw in the unemployment figures, has pushed gold down.”
Data showed the number of Americans filing new claims for unemployment benefits unexpectedly increased last week.
Gold prices have declined about 10% since hitting a record peak in August as expectations of further stimulus from the government waned with the U.S. Congress locked in a stalemate.
Platinum rose 1% to $847, having hit a more-than two-month low earlier. Palladium gained 0.4% to $2,229.83, having touched a near-one-month low earlier.
Elsewhere, silver rose 1.8% to $23.28 per ounce, having touched its lowest since July 22 earlier.
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