The U.S. dollar’s losses translated into gains for the SPDR Gold Trust (ETF) (NYSEARCA:GLD) this morning in premarket trading as the yellow metal registered a rally during the early European hours. Gold has risen by more than 1% during the day as the Federal Reserve’s cautious tone as reflected in its March policy meeting minutes solidified expectations that rate hikes in the U.S. will not take place at a faster pace.

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Dovish tone of the Fed

The consensus amongst Fed officials remained skewed towards a dovish stance, which spurred appeal for gold. Though the Fed has hinted at two rate hikes this year, the pictures is still unclear.

Gold Futures for June delivery rose 1.15% to $1,237.90 during today’s trading session. 2016 has been favourable for the metals markets as uncertainty over the Fed’s rate hike outlook helped gold gain 16% this year so far. Gold is highly sensitive to rate hikes as an increase in rates make returns on the metal less attractive.

Saxo Bank senior manager Ole Hansen said that the Fed’s minutes alongside dollar weakness has favoured gold and led to a spike in its demand.

Asanko’s commercial production

In miners, Asanko Gold Inc (NYSEMKT:AKG) published a press release providing details of an early start to its commercial production at Phase 1 of the Asanko Gold Mine in West Africa. The company said that the Asanko mine processed a total of 276,146 tonnes of gold as of March. It anticipates production to speed up further during the second quarter.

Meanwhile, Sandstorm Gold Ltd (NYSEMKT:SAND) declared that it has sold its stake in AuRico Metals, Inc. The sale fetched the company a total of $10 million, which will be utilised towards reducing the company’s revolving credit facility balance to $66 million.

IAMGOLD Corp (USA) (NYSE:IAG) informed its shareholders that it has finally obtained the short form base shelf prospectus, which has helped it to proceed with filing with securities regulators.