Gold surged to the highest levels in nearly seven months as the US dollar wilted and commodity prices and global equities rallied. Gold futures advanced sharply after the Fed said Thursday that it would buy $40 billion of mortgage-backed securities each month until it starts to see the labor market pick up. The US central bank also extended an existing program where it buys long-dated securities and sells short-dated ones, and extended guidance for ultra low interest rates out to 2015. The yellow metal has now rallied for a fourth consecutive week and seems to be have been put on a very firm track following the gain of nearly 40 dollars in a single session after the FOMC pledge. The Metal neared $1780 per ounce on Friday and is up more than 200 dollars in the month so far. The Indian gold prices jumped to fresh all time highs above Rs 32000 though the strength in the INR capped the upside. MCX Gold futures for October shot up above Rs 32400 per 10 grams in intraday moves but dropped thereafter as the INR broke below 55 per US dollar mark. The contract continued to witness buying support near Rs 31800 per 10 grams.
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