Gold’s London AM fix this morning was USD 1,713.00, GBP 1,091.10, and EUR 1,300.59 per ounce.
Yesterday's AM fix was USD 1,659.00, GBP 1,064.08, and EUR 1,277.04 per ounce.
Gold rose 2.5% yesterday and broke $1,700/oz to $1,712.80, its biggest one-day gain in the past 4 months, as the US Federal Reserve’s 11 out of 17 members voted that interest rates would likely remain near zero into late 2014.
Investors sought safe haven refuge into gold fearing their portfolios would lose value as Central Banks flood the markets with loose monetary policies and more cash for governments that can't seem to manage their balance sheets. A group of 7 major economies now have interest rates that average .5%.
Spot gold rose 2.7% to $1,710.44/oz by 4:33pm EST (21:33 GMT).
Technical buying also propelled prices after the metal broke above its 100 day moving average for the first time in 1-1/2 months. Silver also rallied up 4%. Today's Comex February gold option expirations will show more activity in the gold markets. One trader stated that gold's gains on Wednesday could be due to a huge cover on a short position before today's option expiration.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
Gold rises to 6-week high on Fed rate vow
Fed: Benchmark Rate Will Stay Low Until ’14
Update: Gold Reclaims $1,700 After FOMC Statement Signals Fed More Dovish Than Thought
The Federal Reserve on gold and silver
Gold Prices Soar as Fed Commits to Easy Money
(King World News)
Jim Sinclair – Mainstream Entities Will Now Enter the Gold Market