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1st LD Writethru: Gold rallies after Fed statement

Xinhua, June 19, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday after the U.S. Federal Reserve indicated patience on the timing of interest rate hikes.

The most active gold contract for August delivery gained 25.2 U. S. dollars, or 2.14 percent, to settle at 1,202 dollars per ounce.

The precious metal was given support after the U.S. Federal Reserve's Open Market Committee Meeting issued a statement saying they would not raise interest rates until there was continuous improvement in the U.S. labor market. Analysts originally believed that interest rates could rise as early as June, but due to worse- than-expected jobs data in March, they now believe that interest rates may rise in September.

Gold was given further support as the U.S. Dollar Index, a measure of the greenback against a basket of major currencies, fell by 0.24 percent to 94.06 as of 1709 GMT. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Traders also carefully monitored the situation in Greece after German Chancellor Angela Merkel indicated that it was still possible for Greece to reach an agreement with the European Central Bank. Tension over a potential Greek deal is likely to give support to gold, and productive news is likely to put pressure on the precious metal.

Silver for July delivery added 20.6 cents, or 1.29 percent, to close at 16.153 dollars per ounce. Platinum for July delivery rallied 10.1 dollars, or 0.94 percent, to close at 1,082.80 dollars per ounce. Endite