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Gold Climbs as Fed Says Investors Are Overly Complacent on Risks

July 9 (Bloomberg) -- Gold rose after minutes from the Federal Reserve’s June meeting were released.

Some policy makers were concerned investors may be growing too complacent about the economic outlook and the central bank should be on the lookout for excessive risk-taking, the minutes of the June 17-18 Federal Open Market Committee meeting showed. The central bank said last month that interest rates will stay low for a “considerable time,” boosting demand for the metal as an inflation hedge.

Bullion slumped 28 percent in 2013 amid concern that the U.S. central bank would slow the pace of monetary stimulus. Prices rebound 9.8 percent this year through yesterday partly as signs of a sputtering economic recovery boosted speculation that the Fed would keep borrowing costs near zero percent.

Gold for immediate delivery rose 0.4 percent to $1,324.54 an ounce at 2:03 p.m. New York time. On the Comex, gold futures for August delivery settled 0.6 percent higher at $1,324.30 at 1:35 p.m. in New York.

The precious metal jumped 70 percent from December 2008 to June 2011 as the Fed bought debt and cut interest rates to a record in a bid to boost the U.S. economy. The central bank trimmed its monthly bond-buying program to $35 billion, after five straight cuts of $10 billion each since November.

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