Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold added another 1% to close at a two-week high near $1,345 as the dollar slipped further in the wake of yesterday's decision by the Fed to keep interest rates unchanged. The metal has now risen 2.7% over four straight winning sessions.

At the conclusion of its two-day meeting on monetary policy, the FOMC voted against raising rates because it needs "further evidence of continued progress" in growth, employment, and inflation. The Bank of Japan also held its rates, undercutting forex bets that monetary policy in the world's largest and third-largest economies would diverge further.

The dollar slid for a second day on the Fed decision. A weaker dollar supports gold and other commodities denominated in it for international trade by making them less expensive in foreign markets.

Stocks also rallied for a second day, with the Dow and Global Dow adding another 0.6% and 1.2%, respectively, on the prospect of continued low U.S. rates.

The other precious metals also gained, with silver climbing 1.7% to close above $20 for the first time in two weeks. Platinum and plaldium added 1.4% and 2.4%, respectively.

At the Comex close: December gold gained $13.30 to $1,344.70; December silver rose 33 cents to $20.10; October platinum climbed $14.90 to $1,062.80; and December palladium picked up $16.55 to $700.45 an ounce.