Gold rose more than 1% to a 6-1/2-week high on Thursday as stock markets, commodities and the euro all rallied after the U.S. Federal Reserve extended by 18 months its plan to keep interest rates historically low and hinted at further economic stimulus. The day after the Fed`s announcement, spot gold jumped to its biggest one-day rise in three months, then pulled back from session highs.
Fed policymakers said they probably would keep key U.S. interest rate targets near zero until at least 2014. Fed Chairman Ben Bernanke said the central bank was ready to offer additional economic stimulus. Meanwhile, the euro surged to a five-week high against the dollar, further boosting dollar-denominated gold in overseas markets, after U.S. jobs and manufacturing data fed risk appetite with their suggestions of a strengthening U.S. Economy, said broking firm Emkay Global Services.
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