Gold rose on Thursday as a drop in equities boosted its appeal as an alternative asset, heading for its biggest quarterly gain in nearly 30 years as expectations that the Federal Reserve would press ahead with interest rate hikes receded.
The metal is highly exposed to rising rates, which lift the opportunity cost of holding non-yielding assets while boosting the dollar. It fell 10 percent last year ahead of the first U.S. rate increase in nearly a decade in December.
Spot gold was up 0.8% at $1,234.61 an ounce early Thursday, while U.S. gold futures for April delivery were up $8 an ounce at $1,236.60.
