The Fed remains cautious.
by Joe Deaux and Eddie van der Walt
Gold gained the most in a week after Federal Reserve minutes indicated policy makers remained cautious about raising U.S. interest rates, making the precious metal look more competitive against interest-bearing assets.
Minutes of the Fed’s March 15-16 meeting released Wednesday showed officials highlighted persistent risks facing the global outlook and the threats they posed to the health of the U.S. economy. Gold is benefiting, with traders giving about a 50-50 chance of a rate increase by December.
The metal has climbed 17 percent this year as the dollar weakened, spurring demand for an alternative asset. The Japanese yen surged to its strongest level in almost 1 1/2 years on Thursday amid the Bank of Japan’s apparent reluctance to intervene.