Investing.com - Gold prices added to overnights gains in North American trade on Thursday, climbing to a more than two-week high after the Federal Reserve gave no indication whether it would raise rates at its next meeting in September.
Gold for December delivery on the Comex division of the New York Mercantile Exchange climbed to a session high of $1,352.60 a troy ounce, the most since July 12. It last traded at $1,350.35 by 12:50GMT, or 8:50AM ET, up $15.85, or 1.19%. A day earlier, gold tacked on $6.20, or 0.46%.
The Fed left interest rates unchanged on Wednesday and said near-term risks to the U.S. economic outlook had diminished. However, the central bank stopped short of signaling a near-term rate rise.
Fed funds futures are currently pricing in an 18% chance of a rate hike by September, down from around 22% the day before. December odds fell to 43% from 52% earlier in the week.
The yellow metal is sensitive to moves in U.S. interest rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 96.50 early on Thursday, compared to its last close at 97.05 and off a more than four-month high of 97.59 earlier this week.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Gold is up almost 25% for the year to date, boosted by concerns over global growth and expectations of monetary stimulus. Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
Prices surged to a more than two-year high of $1,377.50 earlier in July, as concerns surrounding global growth in wake of Britain’s vote to exit the European Union sent investors flooding into safe haven assets.
Also on the Comex, silver futures for September delivery rallied 41.8 cents, or 2.1%, to trade at $20.41 a troy ounce during morning hours in New York, while copper futures rose 2.7 cents, or 1.24%, to $2.212 a pound.