Gold price gains most in 5 weeks as Fed signals slower rate increases

Frankfurt (Jun 18)  Gold today climbed the most in five weeks after the Federal Reserve signaled it will take a slow approach to raising interest rates.

Gold gained 1% to $1,196.85.

The Bloomberg Dollar Spot Index slipped to a one-month low after the Fed on Wednesday cut its longer-term projections for US borrowing costs, while maintaining a forecast for the benchmark rate to rise by year-end.

Higher borrowing costs curb gold's allure because the metal doesn't pay interest or give returns like other assets such as bonds and equities.

Source: dna