Gold prices headed for the longest rally since June amid easing concern that the Federal Reserve is close to raising interest rates, reviving demand for the metal as an inflation hedge.

More than $1.2 billion has been added to the value of exchange-traded products backed by bullion this week as prices rebounded. The 30-day historical volatility for futures traded in New York climbed today to the highest in more than a month amid renewed investor interest.

Gold on Oct. 6 reached the lowest price this year as signs of an improving American labor market spurred bets that the Fed was moving closer to increasing borrowing costs. Minutes released yesterday from the central bank’s September meeting showed policy makers identified slowing global growth and a stronger currency as potential risks to the U.S. outlook.

“Follow-through from the Fed commentary yesterday is keeping a boost under precious metals,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said. “Everyone thought they were extremely hawkish and that they were going to raise rates soon, and now it appears they’re not going to do that because everyone is afraid of a global slowdown.”

Gold for immediate delivery increased 0.3 percent to $1,225.33 an ounce at 6:52 p.m. in London, after touching $1,233.43, the highest since Sept. 23. Prices headed for a fourth straight gain, the longest streak since June 13.

On the Comex in New York, gold futures for December delivery climbed 1.6 percent to settle at $1,225.30.

Prices Slump

The metal in New York slumped 8.4 percent last quarter as equities and the dollar rose. Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand as a store of value.

Gold climbed 70 percent from December 2008 to June 2011 as the Fed bought debt and held borrowing costs near zero percent, boosting inflation concerns. In 2013, futures plunged 28 percent to halt a 12-year rally as some investors lost faith in the metal as a store of value.

Silver futures for December delivery climbed 2.1 percent to $17.418 an ounce on the Comex. On the New York Mercantile Exchange, platinum and palladium also advanced.