Gold Climbs to Two-Year High as Fed Cools Rate Hike Talk

by Jan Harvey

Gold rallied to a two-year high after the Federal Reserve sounded a less dovish note after its latest policy meeting, and as the dollar sank to a 21-month low versus the yen.

The Fed’s cautious stance comes ahead of a British referendum on June 23 on whether to leave the European Union, which has dented appetite for assets seen as higher risk and sent investors scurrying for bonds and gold.

Spot gold was up 1.2 percent at $1,306.30 an ounce at 0936 GMT (5.36 a.m. ET), while U.S. gold futures for August delivery were up $21.40 an ounce at $1,309.70. Spot prices have bounced 7 percent this month after sliding to 3-1/2 month lows on May 30.

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