Gold prices retreated on Thursday as shares soared, but the metal held above $1200 as Fed minutes suggested policymakers would adopt a slow path of interest increases this year.
The precious metal hit a bottom of $1205.01 an ounce, while currently trading around $1206.15 from the opening at $1208.57.
Asian shares gained as the rise in oil prices improved the sentiment and boosted energy stocks, trailing gains in U.S. equities that reported their largest three-day gain since August on Wednesday.
Crude oil climbed 7.86 percent on Wednesday, where it is currently trading around $31.25 a barrel, after Iran welcomed the output freeze at January levels by Saudi Arabia, Russia, Qatar and Venezuela.
The yellow metal gained yesterday after Fed minutes showed that policymakers discussed “altering their earlier views of the appropriate path for the target range for the federal funds rate.”
Now, some analysts predict the Fed would not raise its interest until the second half of this year, instead of previous forecasts of seeing a rate hike in March.
The delay of raising interest rates should give some support to bullion that reported its third annual decline in 2015 on the Fed’s rate hike prospects.
The dollar retreated to trade around 96.73, according to the dollar index, where it faced resistance after it hit a peak of 97.10 the previous session.
The green currency strengthened after upbeat U.S. producer prices and industrial production data, but the Fed minutes erased the gains.
Gold is still finding support near the psychological level of $1200, which may help it to rise again.
