Gold price rises after dovish FOMC minutes

Profiting from a weaker US dollar, the gold price has risen above $1,150 per troy ounce again this morning. As the minutes of the most recent meeting of the US Federal Reserve reveal, the decision to leave interest rates unchanged appears not to have been such a close call as some Fed members have been suggesting in recent weeks. 
In the minutes, the Fed refers to a number of uncertainties and risks, such as the decline in the oil price, the appreciation of the US dollar, the weaker growth in the emerging economies and the lower market-based inflation expectations. It would therefore seem that the Fed is in no great hurry to implement its first rate hike. 

This is also supported by the disappointing labour market report for September, though it had not yet been published at the time of the Fed's meeting. On the other hand, the latest sharp increase in oil prices could result in higher inflation expectations, notes Commerzbank.