Gold Rises to One-Week High as Fed Maintains Stimulus

Gold rose to a one-week high in London after the Federal Reserve maintained the pace of U.S. bond purchases, boosting demand for the metal as a store of value.

The Federal Open Market Committee said it will “await more evidence” for sustained economic recovery before reducing its $85 billion in monthly stimulus. Gold has dropped 18 percent this year on speculation that the Fed would taper debt purchases that helped the metal cap a 12-year bull run in 2012.

Gold for immediate delivery rose 0.2 percent to settle at $1,366.36 an ounce at 4:59 p.m. in New York. Earlier, the price reached $1,375.81, the highest since Sept. 10. Yesterday, the metal surged 4.1 percent, the most in 15 months.

On the Comex in New York, gold futures for December delivery rose 4.7 percent to close at $1,369.30, the biggest gain since March 19, 2009. Yesterday, the price settled 0.1 percent lower before the Fed announcement.

(Source: Bloomberg)