Gold hits one-week high as Fed signals only gradual rate hikes

Gold hit a one-week high on Thursday after the U.S. Federal Reserve signaled a cautious stance on interest rate policy this year, pushing the dollar to its lowest in a month.

Fed Chair Janet Yellen said that the central bank would stick to a gradual path of interest rate rises even if inflation runs above its 2 % target.

Spot gold rose 0.5 % to $1,224.70 per ounce at 0313 GMT after touching $1,225.76, the highest since March 7, earlier in the session.

U.S. gold futures for April delivery, which ended their trading day on Wednesday before the Fed statement was delivered, were up 2 percent at $1,225 an ounce.