The gold prices touched a one-week high after the US dollar and Treasury yields plunged in response to the US Federal Reserve's dovish outlook. The US Federal Reserve signalled to put an end to its interest rate-hiking policy and gave a hint of lower borrowing costs in 2024.

Spot gold rose 1% at $2,046.69 per ounce as of 9:46 a.m. ET (1446 GMT), after surging 2.4% on Wednesday. U.S. gold futures jumped 3.2%, to $2,061.60, according to news agency Reuters.

The market experts have given a positive outlook for gold with a better target price. "We retain a positive outlook for gold, targeting a price of $2,250 per ounce by the end of 2024," UBS analyst Giovanni Staunovo told Reuters.

Seventeen of 19 Fed officials projected lower interest rates by end-2024 after the US central bank kept interest rates steady for the third meeting in a row. 

The lower value of the dollar resulted in the availability of gold for non-dollar buyers at cheaper rates. While the U.S. benchmark 10-year yields dropped to their lowest levels since late July. Lower U.S. interest rates put pressure on the dollar and bond yields, and increase the appeal of non-yielding bullion.

Back home, gold price jumped ₹1,130 to ₹62,950 per 10 grams in the national capital on Thursday amid strong trends in the global markets, according to HDFC Securities. The precious metal had ended at ₹61,820 per 10 grams in the previous close. Silver also rallied ₹2,350 to ₹77,400 per kilogram, while it had closed at ₹75,050 per kg in the previous trade.

On the Multi Commodity Exchange (MCX), gold futures due for a February 5 delivery, were last seen trading higher by ₹1,601 or 2.62 per cent at ₹62,800, having swung between ₹61,391 and ₹62,880 during the session so far, compared to their previous close of ₹61,199. Silver futures for a March 5 delivery were last up 5.15 percent at ₹75,218.