Gold traded near the highest level in almost four weeks as speculation the U.S. Federal Reserve may delay raising borrowing costs on slowing global growth hurt the dollar and boosted demand for a store of value.
Gold for immediate delivery traded at $1,236.12 an ounce at 8:51 a.m. in Singapore from $1,235.87 yesterday, when it rose to $1,237.86, the highest level since Sept. 17, according to Bloomberg generic pricing. The metal advanced after Fed Vice Chairman Stanley Fischer said on Oct. 11 that the central bank may remove accommodation more slowly than otherwise should the pace of overseas growth be weaker than expected.
Gold rallied from this year’s low of $1,183.24 on Oct. 6 as the Bloomberg Dollar Spot Index extended a retreat from a four-year high. Minutes of the Fed’s September meeting, when policy makers pledged to hold U.S. interest rate near zero for a considerable time, showed officials expressed concern that the U.S. economy may be at risk from a global slowdown.