Gold prices soared Thursday to the highest level in almost seven weeks as the dollar weakened after the US Federal Reserve vowed to keep interest rates near zero for more than two years.

The precious metal surged to $1,720.35 an ounce on the London Bullion Market - the highest level since December 9 but still far below the record peak of $1,921.15 struck on September 6.

"With the US Federal pledging to keep interest rates in check until late 2014, gold soared," said Ross Norman, boss of British-based bullion broker Sharps Pixley. "Although there was heavy speculative buying, anxious investors joined the fray who are concerned by currency depreciation as global central banks use easy monetary policies to flood markets with cash."

Source :timesofindia.indiatimes.com