The US central bank's new approach to monetary policy means a low unemployment rate on its own doesn't warrant higher interest rates, Fed vice-chair Richard Clarida said on Monday.
"Expectations of lower for longer when it comes to US interest rates and continued weakness in the USD index are setting a favourable environment for precious metals, especially gold," ING analyst Warren Patterson said in a note. Low interest rates reduce the opportunity cost of holding non-yielding bullion, which is also used as a hedge against inflation and currency depreciation.
The United States said on Monday it was establishing a new bilateral economic dialogue with Taiwan, a decision that could worsen relation between Washington and Beijing as China claims Taiwan as its own territory.Platinum rose 0.9 per cent to US$938.37 and palladium climbed 0.7 per cent to US$2,259.57.For daily updates on weekdays and specially selected content for the weekend. Subscribe to