Gold surged to the highest in more than five years after the U.S. Federal Reserve indicated a readiness to cut interest rates.

Bullion for immediate delivery jumped as much as 2.5% to $1,394.11 an ounce, the highest since September 2013, and traded at $1,382.83 by 9:13 a.m. in Singapore. Futures in New York climbed as much as 3.6% to $1,397.70 an ounce, also the highest since 2013.

The metal has rallied since late May as investors seek havens amid slowing global growth due to the fallout from the U.S.-China trade dispute and as central banks globally adopt a more dovish tone. While the Fed left its key rate unchanged on Wednesday, it dropped a reference to being “patient” on borrowing costs and forecast a larger miss of their 2% inflation target this year.

Source : Bloomberg