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Gold climbs over 1% above $1,200 after Fed statement

Published 12/18/2014, 05:40 AM
Gold futures trade above $1,200 on Fed "patient" stance
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Investing.com - Gold prices climbed over 1% on Thursday, trading above the $1,200 threshold after the Federal Reserve said it would be "patient" before raising interest rates.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 1.04% to $1,206.90.

The February contract ended Wednesday's session up only 0.02% to $1,194.50 an ounce, after tumbling over 1% earlier in the day amid widespread volatility in markets from a rout in oil prices and the sharp fall in Russia’s ruble.

At the conclusion of its monthly policy meeting on Wednesday, the Fed said it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."

The central bank acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

At the bank’s post policy meeting press conference Fed Chair Janet Yellen said the Fed was unlikely to raise rates for the "next couple of meetings" indicating that a move in April at the earliest is possible.

Elsewhere in metals trading, silver for March delivery advanced 0.75% at $16.098 a troy ounce, while copper futures for March delivery slipped 0.19% to $2.865 a pound.

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