Gold Holds Above $1275 Whilst U.S. Dollar Falls

Gold held on to modest overnight gains on Thursday as the dollar weakened after the U.S. Federal Reserve’s outlook on interest rates, while platinum group metals rose as new hurdles emerged in settling South Africa’s mining strike.

The central bank hinted at a slightly more aggressive pace of interest rate increases starting next year, but lowered projections for the long-run target interest rate, sending the dollar to its lowest in nearly two weeks.

The Fed cut its U.S. growth forecast for 2014 from 2.9 percent to a range of between 2.1 percent and 2.3 percent, but it also expressed confidence that the U.S. economic recovery was on track.


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