Gold halts 3-day drop to hold near $1200 before Federal Reserve minutes

LONDON: Gold ended a three-day drop to hold near $1,200 an ounce as investors awaited Federal Reserve minutes for clues on how recent market turmoil will affect the pace of interest-rate increases.

Gold for immediate delivery added 0.2 per cent to $1,203.23 an ounce. It declined 3.7 per cent in the previous three days, the longest run in more than a month. Silver was little changed at $15.23 an ounce.

Bullion retreated from a one-year high set last week as a rebound in global stocks reduced demand for a safe-haven. The metal is still this year's best-performing commodity and purchases through gold-backed funds have already eclipsed all of last year's sales.

After the Fed raised rates for the first time in almost a decade in December, volatility in financial markets prompted traders to push back expectations for another move this year. Low borrowing costs make gold more appealing because it does not pay interest.