The safe haven metal gold has soared to the highest level in a week over a more dovish than expected Fed highlighting concerns about the US economy and assuring monetary easing for a longer period of time. At the time of writing, GOLD is trading at a little above $1,732.

Over the previous session, gold prices gained around 1.3% – the highest rate of growth seen in a single day in over a month. The bullishness in the yellow metal was driven by the Fed cautioning that the US economy could take longer to recover and would need more support from the central bank well into next year.

The Fed also remarked that it could keep interest rates close to zero until at least 2022 as the US economy overcomes the coronavirus crisis and gets back towards pre-pandemic levels of growth. Lower interest rates support the safe haven appeal of gold and have helped prices strengthen for now.

Gold is also trading bullish over rising concerns about the continued uptick in the number of coronavirus cases across the US and the rest of the world. In the US alone, the total number of infections has crossed 2 million and are rising higher after five weeks of decline as the economy begins to reopen after an extended lockdown.