Gold prices rose to its highest level in over a week on Thursday after the US Federal Reserve failed to give a timeline for its tapering plans and said it was “ways away” from considering raising interest rates.

FUNDAMENTALS

Spot gold rose 0.5% to $1,815.56 per ounce by 0129 GMT, having earlier hit a peak since July 20 at $1,817.35.

US gold futures climbed 0.9% to $1,815.30 per ounce.

While the US central bank acknowledged discussing the eventual withdrawal of pandemic-era monetary policy support in its statement, Chairman Jerome Powell said the US job market still had “some ground to cover” before it would be time to pull back.

Large stimulus measures tend to support gold, which is often considered a hedge against inflation and currency debasement.

Powell also downplayed the risk of the spread of the Delta variant of the coronavirus on the economic recovery.

Fed’s policy statement weighed on the dollar index, which hit a two-week low on Wednesday, making gold cheaper for holders of other currencies.

The Centers for Disease Control and Prevention (CDC) said on Wednesday that 66.6% of US counties had transmission rates of COVID-19 high enough to warrant indoor masking and should immediately resume the policy.

Silver rose 0.9% to $25.15 per ounce.

Palladium rose 0.6% to $2,641.69 per ounce, while platinum gained 0.8% at $1,073.42.