Gold futures rallied to a five-week high Thursday as the dollar continued to slide after minutes from the Federal Reserve’s December meeting unsettled investors’ expectations about the pace of interest-rate rises.
Gold for February delivery GCG7, +1.55% gained $13.50, or 1.2%, to $1,178.80 an ounce, setting it on track for its highest settlement since Nov. 29. On Wednesday, it added 0.3% to settle at $1,165.20 an ounce—the loftiest finish since Dec. 12, according to FactSet data.
The gains came after minutes from the central bank’s Dec. 13-14 meeting out Wednesday showed Fed officials are grappling with “considerable uncertainty” about the possible impact on the U.S. economy of President-elect Donald Trump’s fiscal stimulus plans.
Investors appear to be pulling back on their hopes for a more aggressive pace of rate hikes after Fed policy makers “pointed to a number of risks that, if realized, might call for a different path of policy than the currently expected,” according to the minutes.
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