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Gold rose to its highest level in over eight months on Wednesday as the dollar dipped after the US Federal Reserve held interest rates steady and said it would be patient with future interest rate hikes. Spot gold was up 0.6 percent at $1,319.15 per ounce at 4:05 p.m. EST (2105 GMT). The session high of $1,323.24 was the highest since May 11, 2018.

US gold futures settled up 0.1 percent to $1,309.90. The Fed held US interest rates steady on Wednesday but said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the economic outlook. "The fact that (Fed Chairman Jerome) Powell said there is no hurry to raise interest rates is very bullish for gold ... It pretty much took the March rate hike off the table," said Bob Haberkorn, senior market strategist at RJO Futures.

Underscoring investor interest in gold, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1 percent to 823.87 tonnes on Tuesday, their highest since June. SPDR gold holdings have climbed 4.6 percent so far this month, the biggest monthly gain since September 2017. Silver gained 1.4 percent to $16.06 per ounce. Its session high of $16.10 was the highest since July 2018. Palladium rose 1 percent to $1,359, while platinum was up 0.6 percent at $814.50.

Copyright Reuters, 2019


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