Gold rose as prices that fell to a two-week low spurred purchases as investors assessed a decision by U.S. policy makers to drop a pledge to keep borrowing costs low for a “considerable time.” Silver, platinum and palladium climbed.
Bullion for immediate delivery advanced as much as 0.4 percent to $1,194.48 an ounce, and traded at $1,193.52 at 9:45 a.m. in Singapore, according to Bloomberg generic pricing. The metal fell yesterday to $1,183.89, the lowest since Dec. 1, as the Federal Reserve, which has held the benchmark lending rate near zero since December 2008, moved closer to raising it for the first time since 2006.
Gold remains on course to snap two weeks of gains as slumping energy prices threaten to push inflation further below the Fed’s 2 percent target. While data yesterday showed that U.S. consumer prices rose 1.3 percent, the smallest gain since February with oil at five-year lows, other economic reports including payrolls and retail sales backed the case for higher borrowing costs.