Gold prices rose on Thursday bolstered by the US Federal Reserve's pledge to maintain easy monetary policy to aid economic recovery, while a weaker dollar provided further support.
Spot gold was up 0.2 per cent at US$1,784.94 per ounce by 1.01am GMT, having dipped to US$1,762 in the previous session, its lowest since April 16. US gold futures rose 0.6 per cent to US$1,784.50 per ounce.
The dollar index edged 0.1 per cent lower against its rivals, boosting gold's appeal for other currency holders.
The Federal Reserve held interest rates and its bond-buying programme steady on Wednesday after its two-day policy meet despite taking a rosier view of the US economic recovery.
Fed Chair Jerome Powell also said the coming price increases would almost surely be of a passing nature, and not present the sort of persistent problem that would force the central bank to begin raising interest rates sooner than expected.
US President Joe Biden plans to unveil a sweeping US$1.8 trillion package for families and education in his first speech to Congress.
Gold tends to benefit from widespread stimulus measures from central banks because it is viewed as a hedge against inflation.
Meanwhile, the US trade deficit in goods jumped to a record high in March, suggesting trade was a drag on economic growth in the first quarter, but that was likely offset by robust domestic demand amid massive government aid.
Autocatalyst metal palladium edged up 0.3 per cent to US$2,936.10 per ounce, having scaled an all-time peak of US$2,962.50 on Tuesday.
Silver gained 0.6 per cent to US$26.34 per ounce. Platinum was up 0.3 per cent at US$1,222.93.
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