Gold prices surged to their highest in more than five years on Thursday after the U.S. Federal Reserve signalled a possible interest rate cut as early as next month, pressuring U.S. Treasury yields and the dollar.
Spot gold was up 1.6% at $1,380.96 per ounce as of 12:13 GMT, after hitting its highest since March 17, 2014 at $1,386.38.
Gold prices have gained about $80 so far this month.
U.S. gold futures jumped 3% to $1,389.10 an ounce, after touching their highest since April 2018 at $1,397.70.
The Fed on Wednesday signalled interest rate cuts beginning as early as July, saying it is ready to battle growing global and domestic economic risks as it took stock of rising trade tensions and growing concerns about weak inflation.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
Source : Reuters