Gold extends gains, as other precious metals follow suit

LONDON: Post the US central bank reassurance to investors that increases to interest rates would be gradual, the gold prices gained on Thursday, with geopolitical uncertainties also providing support.

Spot gold rose for a second session, firming by 0.8 percent to $1,315.01 an ounce by 1400 GMT, while the US gold futures for June delivery added 0.8pc to $1,316.60. The US Federal Reserve said inflation on a 12-month basis was “expected to run near the committee’s symmetric 2pc objective”.

“Yesterday’s FOMC meeting didn’t spark much fireworks, but it eased concerns over whether the Fed was going to stick to its gradual tightening policy, which I believe they are,” said Ole Hansen, head of the commodity strategy at Saxo Bank in Copenhagen.

Among other precious metals, spot silver rose 1pc to $16.51 an ounce, platinum climbed by 1.2pc to $900.50 and palladium was up 0.9pc at $968.