LONDON: Gold rose on Thursday after the Federal Reserve said it would take a patient approach towards rai­s­ing interest rates, boosting stock markets and commodities, though it pared early gai­ns as the dollar strengthened against a basket of currencies.

Fed Chair Janet Yellen said the Fed was unlikely to hike rates for “at least a couple of meetings”, meaning April of next year at the earliest.

Rising US interest rates increase the opportunity cost of holding non-interest bearing assets such as gold, and also lift the dollar, in which the metal is priced.

Spot gold was up 0.8 per cent at $1,197.30 an ounce by 1522 GMT. It earlier rose as high as $1,212.80, after buy stops were triggered on a break of the $1,200 level.

Spot platinum was up 0.7pc at $1,197.90 an ounce, while spot palladium was up 1.5pc at $787 an ounce.

Published in Dawn, December 19th, 2014