Gold extended an advance to head for the longest rally since June as Federal Reserve officials expressed concern that the U.S. economy may be at risk from a global slowdown, weakening the dollar and boosting haven demand.
Gold for immediate delivery added as much as 0.5 percent to $1,227.16 an ounce, the highest level since Sept. 26, and traded at $1,226.76 at 2:03 p.m. in Singapore, according to Bloomberg generic pricing. The metal rose 2.5 percent in the three days through yesterday after the Fed released minutes of its Sept. 16-17 meeting, when it kept a pledge to hold rates near zero for a considerable time.
Bullion extended a rebound from this year’s low of $1,183.24 on Oct. 6 after a number of Fed officials said the U.S. expansion “might be slower than they expected if foreign economic growth came in weaker than anticipated,” according to the minutes. The Bloomberg Dollar Spot Index fell 0.1 percent, extending a retreat from an almost four-year high on Oct. 3.