Investing.com - Gold bounced off a six-week low struck in the previous session on Thursday, as traders reassessed their expectations for the timing of the first U.S. rate hike following the release of dovish Fed minutes.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rallied $13.50, or 1.12%, to trade at $1,213.60 a troy ounce during European morning hours.
A day earlier, gold fell to $1,197.20, the lowest level since January 5, before settling at $1,200.20, down $8.40, or 0.7%.
Futures were likely to find support at $1,177.80, the low from January 5, and resistance at $1,236.70, the high from February 17.
Minutes of the Federal Reserve's latest policy meeting released Wednesday revealed that "many" policymakers were in favor of holding interest rates at current levels for longer and that raising rates too soon could weigh on the economic recovery.
The dovish minutes prompted investors to push back expectations for the first U.S. rate hike to at least the second half of this year.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
The U.S. dollar came under broad selling pressure amid expectations the Fed would keep its loose monetary policy in place for longer.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.05% to 94.09.
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.
Later in the day, the U.S. was to publish a report on manufacturing activity in the Philadelphia region and the weekly government figures on initial jobless claims as investors look for further hints on the strength of the economy.
Meanwhile, concerns over the Greek debt crisis continued to dominate sentiment. Athens was expected to submit a request for an extension of its existing loan agreement with the euro zone, which it differentiates from its bailout, later Thursday.
Elsewhere on the Comex, silver futures for March delivery jumped 31.3 cents, or 1.92%, to trade at $16.57 a troy ounce. On Wednesday, silver tumbled 11.3 cents, or 0.69%, to close at $16.26.
Meanwhile, copper for March delivery eased down 1.4 cents, or 0.53%, to trade at $2.601 a pound in holiday-thinned trade.
Markets in the world's biggest copper consumer, China, will remain closed until February 24 for the Lunar New Year holiday, removing a key support for prices.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.