Gold prices on Thursday recorded this year's biggest jump of over 27 dollars an ounce on the New York Mercantile Exchange follwoing US Fed Reserve keeping interest rates unchanged.

Gold futures for August delivery jumped 27.40 dollar to 907.70 dollar an ounce on the New York Mercantile Exchange.

The rally in US bolstered the trading sentiments in bullion in India, the biggest importer of the precious metal, as well with prices surging by Rs 300 to Rs 12,800 per 10 gram in Delhi in late trading today.

The Federal Reserve yesterday kept its benchmark interest rate unchanged at two per cent, even as policy makers acknowledged heightening inflationary expectations.

The metal had reached an all-time high of 1,033.90 dollar in March as crude oil and other commodities surged and dollar fell to a record low against the euro.

Oil, gold and copper gained as a weaker dollar increased demand for metals as a hedge against inflation. The US currency dropped after the Federal Reserve gave no indication of higher interest rates yesterday.