Gold prices surged to their highest in more than five years today after the US Federal Reserve signalled a possible interest rate cut as early as next month, pressuring US Treasury yields and the dollar.

Spot gold hit its highest level since March 17, 2014 at $1,386.38 in earlier trade today. 

Gold prices have gained about $80 so far this month. 

US gold futures also jumped 2.8% to $1,386.30 an ounce, after touching their highest since April 2018 at $1,397.70. 

Commenting on the gains, Goldcore said a new sense of urgency is being seen from investors in recent days and an increase in safe haven buying due to concerns about the geopolitical and economic outlook. 

The US Federal Reserve last night signalled interest rate cuts beginning as early as July.

It said it is ready to battle growing global and domestic economic risks as it took stock of rising trade tensions and growing concerns about weak inflation. 

Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies. 

The Fed's rate signal came before meetings at other major central banks in Asia and Europe that were expected to flag similar moves.

The European Central Bank and the Australian central bank had signalled this week more policy stimulus was needed. 

Meanwhile, silver rose 1.4% to $15.37 an ounce, while platinum climbed 1% to $818.71 an ounce. 

Palladium gained 1.3% to $1,520.54 an ounce, having hit a 12-week high of $1,531.38 earlier in the session.