Gold headed for the longest run of gains since October, rising for a fourth straight day, as the dollar held a weekly loss after the Federal Reserve reduced projections for U.S. interest-rate increases.
Bullion for immediate delivery rose as much as 0.4 percent to $1,187.31 an ounce and was at $1,186.68 at 8:01 a.m. in Singapore, according to Bloomberg generic pricing. The metal rallied 2.1 percent last week, rebounding from a three-month low on March 17, as the Bloomberg Dollar Index fell 2.2 percent.
Fed Chair Janet Yellen suggested last week that the U.S. central bank was in no hurry to raise rates, even as a statement after a policy meeting showed officials dropped a pledge to be patient on tightening. Traders had been exiting gold in anticipation of higher borrowing costs, which usually send investors to assets with better yield prospects such as stocks.
Fed officials on March 18 lowered their estimates for where borrowing costs will be at the end of 2015 to 0.625 percent, from December’s estimate of 1.125 percent. Gold typically trades counter to the U.S. currency.
Gold for April delivery traded at $1,186.30 on the Comex from $1,184.60 on March 20, when it capped a weekly gain.
Silver for immediate delivery increased 0.5 percent to $16.834 an ounce, extending last week’s 7 percent advance. Spot platinum added 0.1 percent to $1,140.13 an ounce, while palladium lost 0.1 percent to $776.10 an ounce.
Source : Bloomberg