Gold once again gained appeal and surged to its highest price in over 5 years after the Federal Reserve in its meet held rates steady but indicated at rate cuts in the future course of time. The yellow metal for immediate delivery climbed in price by as much as 2.5% % to $1,394.11 an ounce, the highest since September 2013, and traded at $1,380.18 in Singapore.
Also, the gain in the precious metal has been vigilant since the month of May, as investors had been taking positions in it, due to the US-China trade conundrum that sees no end in near future.
Further, slowing growth concerns across the globe have led central banks to adopt a more dovish stance.
Also, Fed's announcement to be more accommodative comes after the European Central Bank also took to dovish stance and after Trump had been attacked for not taking any major steps to revive the lagging economy.
In the domestic markets, also gold gained in strength and on the MCX gold was trading with gains of Rs. 729 or 2.20% at Rs. 33807.00