Gold ascends to 6-week peak as Fed shows dovish tone on inflation

Gold ascends to 6-week peak as Fed shows dovish tone on inflation

On Thursday, gold soared to the highest value in six weeks in European trade, right after the Fed’s cautious wording on the American inflation outlook drove hopes that policy tightening would be glacial.

Gold futures showed $1,262.82 a troy ounce, gaining 1.1%. The commodity hits its highest value since June 15.

On Wednesday, the precious commodity sank for a third-straight session before moving up in post-settlement trade as the greenback weakened in the wake of the Fed’s quite dovish policy statement.

While the Fed told it actually expected to start shrinking its huge holdings of bonds very soon, it also stressed that weakness in American inflation turns to be more explicit than before.

The recognition of soft inflation contributed to hopes that the Fed's intention to lift interest rates a third time in 2017 might be delayed.

Meanwhile, platinum managed to leapt 1% being worth $931.80, palladium soared 0.5% trading at $867.05 an ounce.

 

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