Gold prices rise following release of Fed Reserve meeting minutes

Gold prices rose today, Nov. 25, but remained below the $1,800 level per ounce, after the release of the Federal Reserve's meeting minutes, which showed signs, that the process of reducing asset purchases can be accelerated in response to inflationary pressures in the United States.

The minutes revealed that an increasing number of MPC members are becoming more flexible about adjusting the pace of the asset purchase program in the event of persistently high inflation, and their willingness to raise rates sooner than expected if necessary.

This came after the US GDP data was released on Nov. 24 before the US markets holiday today, which showed a growth of 2.1% in the third quarter, while unemployment claims recorded 199,000 in the week ending on Nov. 20 - the lowest level in 52 years.

Gold futures contracts for February delivery rose 0.45% to reach $1,794.9 per ounce at 09:35am Makkah time. Spot price for the yellow metal rose 0.25% to reach $1,793 per ounce.

Elsewhere, silver futures for March delivery rose 0.63% to reach $23.6 an ounce. Spot price for platinum delivery rose 1.8% to reach $997.1, while palladium gained 2.47% to reach $1,899.5 per ounce.

The dollar index, which measures the performance of the US currency against a basket of six currencies, rose 0.1% to reach 96.736 points.