Gold prices in India were seen heading towards the milestone of Rs 9,500 per 10 gram after global prices surged to a 27-year peak of over $722 an ounce, driven by the US central bank's decision to cut rate.
Gold prices in the global market jumped to $722.05 an ounce on Wednesday after the US Federal Reserve lowered its benchmark rate by half a percentage point to 4.75 per cent, the first cut in four years.
The analysts believe that the rate cut would put downward pressure on the US dollar, thus boosting the gold prices in the non-dollar currency markets.
The US dollar was trading weak against the rupee, euro and a number of other currencies today. Besides, the crude oil, which touched a record of 82.58 dollar a barrel on Wednesday, also supported the gold rally, experts said.
"The rate cut and rising oil prices has affected