Investing.com - Gold gained in Asia on Thursday after Fed minutes showed tension on rate hike views.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.29% to $1,227.20 a troy ounce.
Silver futures for May delivery gained 0.34% to $15.105 a troy ounce, while copper futures rose 0.28% to $2.149 a pound.
The latest Federal Open Market Committee meeting showed Wednesday Kansas City Fed President Esther George had some support of her view another rate hike was appropriate from a couple non-voting members.
The committee held steady the policy fed funds rate at 0.25% to 0.50% on a 9-1 vote with George dissenting from the decision preferring instead the committee raise the target range for the rate to 0.50% to 0.75%.
"Most participants," which includes all 17 board members and regional Fed presidents, agreed with the voting majority that it was appropriate to keep the fed funds rate where it has been since December when the FOMC raised rates for the first time since 2006.
"A couple of participants, however, saw an increase in the target range to 1/2 to 3/4 percent as appropriate at this meeting," the minutes said, "citing evidence that the economy was continuing to expand at a moderate rate despite developments abroad and earlier volatility in financial conditions, continued improvement in labor market conditions, the firming of inflation over recent months, and the apparent leveling-off of oil prices."
In their judgment, the minutes continued, "increasing the target range for the federal funds rate too gradually in the near term risked having to raise it quickly later, which could cause economic and financial strains at that time."
Overnight, gold fell slightly, erasing some of its gains from the previous session's surge, as investors traded cautiously.
Gold is coming off its strongest quarter in three decades, when it surged nearly 15% as investors piled into the safe-haven asset due primarily to mounting concerns of a China-driven global economic slowdown.
In its last meeting, the FOMC lowered its long-term interest rate and inflation forecasts reducing the number of projected rate hikes this year from four to two. Since then, Yellen has appeared even more dovish, prompting futures market to lower the probability of multiple rate hike approvals by the Fed before the end of 2016.
Citing increased risks with global financial and economic conditions, as well as longstanding concerns with the price of oil, Yellen said at a closely-watched speech last week that the FOMC should only consider gradual rate hikes in the near term.
"Implicitly, this expectation of fading headwinds and a rising neutral rate is a key reason for the FOMC's assessment that gradual increases in the federal funds rate over time will likely be appropriate," Yellen said in an address before the Economic Club of New York.
Any rate hikes by the Fed this year are viewed as bearish for gold which struggles to compete with high yield bearing assets in rising rate environments.