Gold Surges to Above $1200 on Cautious Fed

Gold rose above $1,200 an ounce on Thursday, its biggest increase in almost a month, as the U.S. dollar slid the day after the Federal Reserve indicated that interest rates may rise more slowly than many had expected.

An early rally across precious metals sent silver to its highest in two weeks, although buying in platinum and palladium ran out of steam by late afternoon.  “This is all about the Fed and the lower rate hike projections,” Saxo Bank analyst Ole Hansen said.

On Wednesday, Fed policymakers said an increase from the current near-zero interest rate would be appropriate only after further improvement in the labor market.