Gold futures on the COMEX Division of the New York Mercantile Exchange rose further on Thursday, as the Fed's decision to keep rates at historical lows for longer than expected fueled more inflation fears and dragged down the greenback.

The most active gold contract for February delivery rose 26.6 dollars, or 1.6 percent, to 1,726.7 dollars per ounce.

Gold continued to rally as the U.S. Federal Reserve pledged to hold interest rates low until late 2014, which surprised the market and indicated the central bank's concerns that the U.S. economic growth still has the risk of faltering.

Meanwhile, the precious metal also gained support, as traders expected that there will be Fed-induced stimulus to support growth in the country.

"They also stated that they expect to maintain a highly accommodative monetary policy. This may indicate more easing in the future," said Mike Daly, a gold specialist with PFGbest here in Chicago.

"Such easing measures will fuel inflationary pressures, and when inflation even threatens to rear its head, gold rises and shines," said a trader.

The further retreat in U.S. dollar also helped lift gold price, as a weaker dollar makes gold more affordable to holders of other currencies.

Silver for March delivery rallied 62.2 cents, or 1.9 percent, to 33.743 dollars per ounce. Platinum for April delivery rallied 37.2 dollars, or 2.4 percent, to 1,616.8 dollars per ounce.