Gold futures prices surged to the highest level in four weeks on Thursday, as greenback climbed off its highest level in 14 years versus a basket of major currencies after the release of comments from the Fed, and a technical rebound.
Gold for February delivery on the Comex Exchange touched an intraday peak of $1,179.90 a troy ounce.
Spot gold was up 1.3 per cent at $1,178.36 an ounce. It touched a high of $1,178.62, its best since Dec. 7.
Decline in greenback index, which tracks the dollar’s strength against a trade-weighted basket of six major currencies, to as low as 101.73, its lowest level in three weeks, only two days had recorded the highest level in 14 years after 103.82. It was last at 102.17 In early Tokyo trade, down 0.3%.
Minutes from the Fed’s December policy meeting showed most officials thought the U.S. economy could can grow more quickly amidst of tax cuts and infrastructure spending under the new administration of President-elect Donald Trump thinks.
Buying from China, the biggest consumer of the yellow metal, is also supporting the recent rally.
Holdings of the SPDR Gold Trust, were unchanged on Wednesday at 813.87 tonnes.
On the Multi Commodity Exchange (MCX) were trading 0.58 per cent or Rs 161 up at Rs 27,843 per 10 gram on weak dollar.
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