Gold Surge On Dovish Fed Comments, Dollar Slips

International gold surged after the US Federal Reserve hinted on dovish monetary policy. The weakness in Dollar also helped to support sentiments.

International gold surged and was seen trading at $1,168 an ounce after hitting high of $1,177.46

The Federal Reserve, dropped an assurance to be "patient" in raising interest rates and hinted to expect hike in interest rates in Midyear.

Also, the Fed stressed that the pace of interest rates hikes may get delayed depending on the economic growth in the country.

Further, dollar slipped against basket of currencies which in turn raised the appeal of the bullion as an alternative asset. As weak dollar will make the precious metal cheaper for those holding other currencies, thus pushing gold higher.

Earlier, this week gold fell to four month low on speculation over Fed interest rate hike, as fears mounted on gold movement. Check the spot gold rates in various cities here.

Following the international market gold in India also surged. At MCX, Gold futures for April 2015 contract, were seen trading at Rs. 25,881 per 10 grams, up by 0.95 per cent after opening at Rs. 25,74.

It touched an intra-day high of Rs 25,946 per 10 grams.

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