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SINGAPORE. — Gold edged up for a second session yesterday as the dollar weakened after minutes of the Federal Reserve’s recent policy meeting gave no indication of when US interest rates will rise.
Markets were also waiting to see if India, the world’s number two gold consumer after China, would ease a record high import duty on the precious metal at the fiscal budget on Thursday.

Spot gold rose 0,1 percent to $1 327,40 per ounce, after gaining 0,5 percent in the previous session, aided by the dollar that hit a one-week low against a basket of major currencies. A weaker dollar makes commodities priced in the greenback attractive for holders of other currencies.

Gold had come under pressure after last week’s strong US jobs report that stoked speculation of an early hike in rates, but the Federal Reserve gave no such indications, according to the minutes from the June meeting. Higher rates would encourage investors to withdraw money from non interest-bearing assets such as gold.

India last year took steps to curb gold purchases and imposed a record 10 percent duty on imports in an effort to reduce its high current account deficit.

The new government led by Narendra Modi had indicated earlier that they would ease the restrictions, with expectations mounting that an announcement could come on Thursday when the government presents its first fiscal budget.

In early morning trade, more than an hour into the budget session in Parliament, the Indian finance minister had not mentioned any cut to the gold import duty.

A senior official at the country’s biggest gold trade group expected India to ease its gold import duty to 6 percent in Thursday’s budget, leading to a rise in overseas purchases of the precious metal in the second half. Indian gold imports slid by a fifth last year, so any jump in imports from the country would be likely to underpin gold prices. Among other precious metals, platinum and palladium continued to gain amid fears over supply issues from South Africa.

Palladium rose for a 14th straight session to trade near its highest since February 2001. – Reuters.