- Spot gold had risen 0.3 percent to $1,185.35 an ounce by 0038 GMT. It climbed to $1,187.80 on Friday, its highest since March 6, as the dollar tumbled.
- The greenback has been under pressure since last Wednesday when the Fed sounded a cautious note on the health of economic recovery in the United States, and slashed its median estimate for the federal funds rate.
- Market players’ consensus expectation for the U.S. central bank’s interest rate hike have shifted, with a majority of Wall Street’s top banks now expecting the Fed to hold off on raising rates until at least September, and the odds for a June hike fading, a Reuters poll showed.
- Gold had dipped to a four-month low before the Fed meet last week as concerns mounted over higher U.S. interest rates which could dent demand for non-interest bearing bullion. But it has recovered since.
The material has been provided by InstaForex Company – www.instaforex.com