Gold rose on Wednesday as the dollar softened, reversing after touching a four-month low as markets watched the tumble in Chinese stock markets and the unfolding Greek debt crisis. The price of the yellow metal did not react to the June US Federal Reserve policy meeting minutes that showed officials saying they needed to see more signs of a strengthening US economy before raising interest rates.
"There was a bit of ambiguity there," said Bart Melek, head of commodity strategy for TD Securities in Toronto, explaining why the gold market failed to react to the minutes. "The Fed wasn't fully committed. They hedged their bets saying they want to do it but are concerned about the international aspects." Melek was referring to expectations the Fed will raise interest rates later this year.
Spot gold was up 0.6 percent at $1,161.60 an ounce at 2:54 pm EDT (1854 GMT), after falling to $1,146.75, its lowest since March 18, in earlier trade. US gold futures for August delivery settled up $10.9 at $1,163.50 an ounce. Other precious metals fell sharply early, with platinum approaching the $1,000 an ounce mark for the first time in more than six years before paring losses. Silver was up 0.6 percent at $15.13, after a 4.4 percent tumble to the lowest since December 2014 on Tuesday. Palladium was up 0.5 percent to $650.50 an ounce, after falling 3 percent to $627.72 an ounce, a two-year low.