Gold rose on Thursday after the U.S. Federal Reserve said that it would be "patient" in deciding on when to raise interests rates in the US.
International spot gold was seen at $1,199 an ounce. Bullion was supported after the Federal Reserve chairman Janet Yellen said the Fed was unlikely to hike rates for "at least a couple of meetings".
If hike in the interest rate, will drag the gold lower, strengthening dollar. Strong greenback makes gold expensive for those holding other currencies, thus diminishing demand for yellow metal.
Domestic gold also rose tracking firm overseas trend. Gold futures for February 2015 contract, at MCX, is trading at Rs. 26,993 per 10 grams, up by 0.14 per cent at 2.35 pm IST. It touched an intra-day high of Rs 27,070 during the trade. Check the gold rates here.