Gold rose on Wednesday as the dollar softened, reversing after touching a four-month low as markets watched the tumble in Chinese stock markets and the unfolding Greek debt crisis.

The price of the yellow metal did not react to the June U.S. Federal Reserve policy meeting minutes that showed officials saying they needed to see more signs of a strengthening U.S. economy before raising interest rates.

Melek was referring to expectations the Fed will raise interest rates later this year.

San Francisco Fed President John Williams said the Fed will likely raise rates this year but should only do so when there are firmer signs inflation is headed back up toward the central bank’s 2 percent target.

Spot gold was up 0.6 percent at $1,161.60 an ounce at 2:54 p.m. EDT (1854 GMT), after falling to $1,146.75, its lowest since March 18, in earlier trade. U.S. gold futures for August delivery settled up $10.9 at $1,163.50 an ounce.

Other precious metals fell sharply early, with platinum approaching the $1,000 an ounce mark for the first time in more than six years before paring losses.

Source : Reuters