Gold surges after Fed continues stimulus program

AP News
Posted: Sep 19, 2013 4:34 PM

Gold futures rose sharply Thursday following the Federal Reserve's decision a day earlier to continue with its economic stimulus program.

The December contract for gold rose $61.70, or 4.7 percent, to settle at $1,369.30 an ounce. December silver jumped $1.728, or 8 percent, to $23.292 an ounce.

Both metals also rose sharply in late electronic trading Wednesday, after the Fed released its policy statement at 2 p.m. and after the close of regular futures trading for metals.

Gold and silver came back in favor after the Fed said it would not reduce its monthly bond purchases, as many had expected it to do. That raised expectations that the dollar could weaken and inflation might return, two factors that drive precious metals prices higher.

Other metals prices also gained.

December copper rose 6.85 cents to $3.347 a pound. October platinum rose $47.80 to $1,473 an ounce and December palladium rose $35.10 to $738.20 an ounce.

Energy prices were mostly lower.

Benchmark oil for October delivery dropped $1.68, or 1.6 percent, to close at $106.39 a barrel on the New York Mercantile Exchange.

Wholesale gasoline dropped 4 cents to $2.70 per gallon, natural gas gained 1 cent to $3.72 per 1,000 cubic feet and heating oil slipped 4 cents to $3.00 per gallon.

Crop futures were mixed.

December wheat rose 10.5 cents to $6.57 a bushel. December corn edged up 3.25 cents to $4.595 a bushel and November soybeans fell 8.25 cents to $13.395 a bushel.