Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— After dipping 0.1% to close the Comex trading session under $1,230, gold quickly surged 2.5, around $34, to as high as $1,264 in electronic trade after the Federal Reserve kept interest reads unchanged and lowered its outlook for hikes this year.

At the end of its two-day meeting today, the Fed released a surprisingly dovish policy statement citing risks from a "global economic and financial developments" and cutting in half the number of rate hikes it now projects for 2016, from four to two. The majority of committee members expect only a half-percent rise by year end, down from the 1% they forecasted when the hiked in December.

The dollar plunged sharply after the Fed's announcement, losing nearly 1.2% against major rivals. A weaker dollar supports higher prices for gold and other commodities denominated in it for international trade by making them less expensive to users of other currencies.

The other precious metals also spiked higher after the Comex close, with silver jumping 2.4%, platinum 2%, and palladium 1.1%.

At the Comex close: April gold dipped $1.20 to $1,229.80; May silver slipped 4 cents to $15.22; April platinum slid $1.10 to $958.70; June palladium added $6.80, to 577.50 an ounce.