Investing.com - Gold futures edged higher in European trade on Thursday, after minutes from the Federal Reserve's latest policy meeting underscored caution about future rate hikes. Gold for June delivery on the Comex division of the New York Mercantile Exchange tacked on $6.40, or 0.52%, to trade at $1,230.20 a troy ounce by 06:59GMT, or 2:59AM ET. A day earlier, gold lost $5.80, or 0.47%. Minutes from the Fed's March policy meeting released Wednesday signaled that the central bank is unlikely to raise interest rates before June due to concerns over global economic growth. According to the minutes, "a number" of policymakers believe that headwinds to growth will probably persist and that many urged caution about raising rates. The Fed surprised markets following the conclusion of its March policy meeting by cutting its rate hike projection for this year to two from the four it had previously projected, citing the potential impact from weaker global growth on the U.S. economy. Last week, Fed Chair Janet Yellen assured markets the central bank would be cautious in raising rates, stating that there are plenty of risks to its forecast. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases. Prices of the yellow metal are up nearly 14% so far this year as expectations faded that the Fed would move to normalize interest rates due to fears over a China-led global economic slowdown. Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion. The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, fell to 94.03 in early trade, a level not seen since October 15. It last stood at 94.12, down 0.39% for the day. Investors looked ahead to weekly data on initial jobless claims due at 12:30GMT, or 8:30AM ET, to gauge if the world's largest economy is strong enough to withstand further rate hikes this year. Traders will also be paying attention to a speech by Kanas City Fed President Esther George later in the day to further judge the balance of opinion among policymakers on the prospect of further rate hikes. Also Thursday, Fed Chair Yellen is scheduled to participate in a panel discussion at the International House, in New York, alongside former Fed chairmen Ben Bernanke, Alan Greenspan and Paul Volcker for a program entitled "When the Fed speaks, the world listens." Elsewhere on the Comex, silver futures for May delivery rose 10.1 cents, or 0.67%, to trade at $15.15 a troy ounce during morning hours in London, while copper futures dipped 0.1 cents, or 0.02%, to $2.143 a pound.
