Daily Gold Update

Source: Marketwatch

New York— Gold futures gained in electronic trading Wednesday, rebounding from their decline in the regular session, as the Federal Reserve's decision to cut the fed funds rate by 25 basis points boosted demand for the precious metal. Gold for June delivery rose $14.90 to $880 an ounce in electronic trading on the New York Mercantile Exchange. Shortly before the Fed announcement, gold futures finished regular trading at $865.10, down $11.70.

The Federal Reserve cut short-term interest rates for the fourth time this year, signaling that it remains troubled by the economic outlook. The Fed lowered its benchmark federal funds rate by a quarter percentage point, to 2%, in line with market expectations. "The [Fed] statement was very economic neutral and still seemed to focus on the risk of inflation," said Zachary Oxman, a senior trader at Wisdom Financial. "I'd watch for dollar weakness and gold strength off this report today." See full story.