Gold prices hit 6 1/2 week highs on Thursday as stock markets, commodities, and the euro all rallied after the Federal Reserve said it planned to keep interest rates at rock bottom for some years and hinted at further economic stimulus measures. The gain extends the metals' biggest one-day rise in three months on Wednesday after the U.S. Federal Reserve said it might consider further monetary easing through bond purchases and pushed back the likely timing of an eventual interest rate hike to late 2014. The news cheered gold investors, who have long seen a U.S. rate hike, which would lift both the dollar and the opportunity cost of holding non-interest bearing bullion, as the likely point at which the precious metal's rally would peter out. "The strong rally in gold changed what prior to the announcement had been a test of gold's resolve," said Saxo Bank senior manager Ole Hansen. "The Fed statement changed all that, and from thinking that the gold rally potentially only had one year left to run, it could now continue for longer. The 'off' button on the printing press has well and truly been taped over." Gold [XAU= Unavailable () ] was up 0.3 percent at $1,714.60 an ounce, while U.S. gold futures [GCCV1 1728.60 28.50 (+1.68%) ] for February delivery were up $14.70 an ounce at $1,714.80. Earlier spot prices hit a peak of $1,719.89 an ounce, their highest since December 9. The euro rose to a five-week high against the dollar as a dovish stance from the U.S. Federal Reserve supported risk appetite and on speculation of a breakthrough in Greek debt negotiations. The top negotiator for private creditors is scheduled to return to Athens later to resume talks with officials on a debt swap deal for Greece. Equity markets were higher, meanwhile, tracking gains in Asia after the Fed announcement raised hopes the central bank was ready to offer additional stimulus for growth.

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