Gold advances as investors weigh US Fed's new approach on inflation

Spot gold advanced 0.6 per cent to $1,941 an ounce at 12:28 p.m. in Singapore. On Thursday, prices slumped as much as 2.3 per cent after rising 1.1 per cent

Gold climbed as investors weighed the impact of the Federal Reserve’s new approach to setting U.S. monetary policy, with a more relaxed stance on inflation.

Chair Jerome Powell said that the Fed will seek inflation that averages 2 per cent over time, a step that implies allowing for price gains to overshoot. He also noted that “if excessive inflationary pressures were to build or inflation expectations were to ratchet above levels consistent with our goal,” the central bank wouldn’t hesitate to act.

Gold climbs as investors weigh Fed's comments on inflation

Bullion swung sharply Thursday as investors parsed the speech