SAN FRANCISCO (MarketWatch) — Gold futures settled higher on Thursday, rebounding from their lowest close in almost seven weeks on signs the Federal Reserve is in no hurry to hike interest rates.

Gold for April delivery US:GCJ5 tacked on $7.40, or 0.5%, to settle at $1,207.60 an ounce on Comex.

The metal traded as high as $1,222.90 after Germany said Greece’s request for a six-month extension of its loan agreement wasn’t a “substantial proposal” to resolve the Greek government’s debt standoff with its eurozone partners.

While the news regarding Greece helped buoy demand for gold as a so-called safe-haven investment, the news also provided support for the U.S. dollar DXY, +0.03% which in turn put a cap on gains for dollar-denominated gold.

Still, it was the minutes of the Federal Open Market Committee’s latest policy meeting that set the tone, analysts said.

Gold bounced “in a follow-through from the release of Fed meeting minutes that were of a more-dovish cast than had been expected,” said Brien Lundin, editor of Gold Newsletter.

Low interest rates benefit gold, which is a noninterest bearing asset, while higher interest rates may boost the dollar, putting pressure on gold.

Read: Fed majority rejects near-term interest-rate hike

Gold took one on the chin Wednesday, dropping to $1,200.20 — the lowest settlement since Jan. 2, based on most-active contracts, as the Lunar New Year holiday in China kept buyers away. Traders were also jittery ahead of the minutes, which were released after gold trading closed on Comex Wednesday. Read: Gold prices aren’t reveling this Lunar New Year.

Fed's rate debate heats up

In step with gold’s gains, March silver US:SIH5 added 11.6 cents, or 0.7%, to end at $16.38 an ounce.

March copper US:HGH5, rose by around half a cent to $2.62 a pound.

April platinum US:PLJ5 rose $5.10, or 0.4%, to $1,172.30 an ounce, and March palladium US:PAH5 added $10.20, or 1.3%, to $786.80 an ounce.