LONDON: Gold rose on Thursday, building on a 2.5 per cent rally in the previous session after the Federal Reserve cut the number of interest rate rises it forecasts for this year, sending the dollar sharply lower.
The US central bank held interest rates steady and indicated it would tighten policy this year, but fresh projections showed policymakers expect two quarter-point increases by year-end, half the number forecast in December.
Spot gold was up 0.3 per cent at $1,266.01 an ounce at 1445 GMT, while US gold futures for April delivery were up 3pc at $1,266.90.
Gold has climbed nearly 20pc since the end of last year as investors scaled back their expectations the Fed would continue to push rates higher. Among other precious metals, silver was up 2.6pc at $15.98 an ounce, while platinum was up 1.4pc at $990.05 and palladium was up 1.8pc at $590.
