LONDON: Gold built on the previous day’s gains on Thursday, edging to a three-month high as global economic and financial headwinds continue to present obstacles to a US interest rate rise in the near term.

Commodities rallied across the board on Wednesday as the dollar tumbled after William Dudley, president of the Federal Reserve Bank of New York, said that financial conditions have tightened considerably and the weakening global outlook could have “significant consequences” for the US economy.

Spot gold touched $1,147.40 an ounce, its highest since Oct. 30, before stabilising. It was up 0.2 per cent at $1,145.23 by 1224 GMT, having risen 1.2pc on Wednesday for its biggest daily gain since Jan. 20.

US gold for April delivery was up 0.5pc at $1,146.50 an ounce.

Holdings of the top gold-backed exchange-traded fund, SPDR Gold Trust, continued to rise, standing at 22.19 million ounces on Wednesday, the most since late October. Spot silver was up 0.5pc at $14.75 an ounce, not far below Wednesday’s three-month peak of $14.80.

Published in Dawn, February 5th, 2016