Investing.com - Gold rallied to a two-week high on Thursday, as markets interpreted the Federal Reserve's statement as dovish.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery hit a session high of $1,177.00 a troy ounce, the most since March 6, before trading at $1,166.90 during European morning hours, up $15.60, or 1.35%.
A day earlier, gold tacked on $3.10, or 0.27%, to close at $1,151.30. Futures were likely to find support at $1,141.60, the low from March 17, and resistance at $1,200.00, the high from March 6.
In a statement following its monetary policy meeting on Wednesday, the Fed downgraded its forecasts for growth and inflation and lowered its interest rate projections.
The Fed dropped a reference to being "patient" on the timing of rate hikes, but added that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase.
"Just because we removed the word "patient" does not mean we will become impatient," Fed Chair Janet Yellen said at a post-meeting press conference.
Yellen also warned that the stronger dollar was acting as a drag on U.S. exports and was pushing down inflation.
The statement prompted investors to push back expectations on the timing and pace of future rate increases.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Gold fell to a four-month low of $1,141.60 earlier in the week amid concerns that the Federal Reserve will start raising rates as early as in June.
Meanwhile, silver futures for May delivery surged 34.4 cents, or 2.21%, to trade at $15.88 a troy ounce. On Wednesday, silver dipped 3.7 cents, or 0.24%, to close at $15.54.
Elsewhere on the Comex, copper for May delivery advanced 3.5 cents, or 1.34%, to trade at $2.605 a pound.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last up 1.88% to 99.21, after falling to three-week lows of 94.77 on Wednesday.