LONDON: Gold prices hit a three-month high on Thursday after the minutes of the latest Federal Reserve policy meeting further dampened expectations of an interest rate hike in March, lowering US bond yields and stalling upward momentum in the dollar.

Spot gold was on track for its biggest daily gain since Feb. 6, rising 0.9 per cent by 1611 GMT to $1,249.05 an ounce, its highest since Nov 11. US gold futures rose 1.3pc to $1,250.

A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion. Higher interest rates would lift yields.

Silver was up 0.5pc at $18.11 an ounce. Platinum was 0.7pc higher at $1,009.60 an ounce, and palladium was up 0.8pc at $775.

Published in Dawn, February 24th, 2017