Summary Box: Gold spikes on Fed announcement

AP News
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Posted: Apr 27, 2011 5:25 PM
Summary Box: Gold spikes on Fed announcement

METALS RISE: Gold and silver prices rallied after the Fed announced it would keep interest rates near zero. That fueled fears of inflation, leading investors to bid up precious metals.

LOW INTEREST RATES: To nurture the economic recovery, the Fed said Wednesday it will hold its key interest rate at a record low near zero for an "extended period."

OIL UP TOO: Low interest rates have kept the dollar weak against other currencies. That has contributed to higher oil prices, since oil is priced in dollars. Benchmark crude for May delivery rose 55 cents to settle at $112.76 per barrel.