Gold prices rose to an 11-week high on Thursday after the US Federal Reserve gave no clear signal on the likelihood of a March interest rate increase in its latest statement, prompting another drop in the US dollar. The US currency slipped to the lowest since mid-November against a basket of currencies, but gold pared gains as the dollar turned positive later in the session.
Spot gold struck its highest level since November 17 at $1,225.30 an ounce, and was up 0.6 percent at $1,216.10 by 2:22 pm EST (1922 GMT). US gold futures for April delivery settled up 0.9 percent at $1,219.40. "Gold... successfully traded through its resistance at $1,220," Heraeus trader Alexander Zumpfe said. "If it closes above there, the short-term uptrend is back and a test of $1,235 might be on the cards."
The weakening dollar was the main factor driving gold higher, along with concerns about political risk, said Afshin Nabavi, head of trading at MKS. "Gold has benefited on the back of yesterday's FOMC meeting and recent US policy statements," said RBC Capital Markets in a research note. Among other precious metals, silver was down 0.3 percent at $17.46 an ounce, while platinum was up 0.10 percent at $997.
Palladium was 0.7 percent at $756.98.
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