LONDON: Gold pared gains on Thursday after stronger-than-expected US data lifted the dollar and impetus from Chinese buying petered out, but it remained higher after the Federal Reserve indicated this week that it was in no rush to raise interest rates.

The dollar rose against a currency basket as data on US durable goods orders in January beat forecasts, boosting confidence in business activity despite worries of the recent surge in the dollar hurting exports.That weighed on gold, which is priced in the US unit.

Spot gold was up 0.3 per cent at $1,207.9 an ounce at 1503 GMT. Earlier it hit a session high of $1,220.00, before retreating as the dollar firmed.

Gold prices have fallen around 10pc over the last year, largely due to the prospect of higher US rates, which would increase the opportunity cost of holding non-yielding bullion, while boosting the dollar.

Published in Dawn, February 27th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play