Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold surged another 1.9% to close at a three-week near $1,138 after yesterday's decision by the Fed to leave interest rates unchanged weakened equities, boosting safe-haven demand. The metal finished the week 3.1% higher.

Following this week's meeting, the FOMC issued surprisingly dovish statements citing weak inflation and soft exports as key reasons to continue holding rates near zero. It also mentioned "recent global economic and financial developments" as likely to restrain growth and "put further downward pressure on inflation." Speaking to the press, Fed Chair Janet Yellen acknowledged the slowdown in China and rising market volatility as compelling reasons to wait.

Stocks tumbled on the Fed's wary view of the global picture, with the Dow losing 1.4% and the Global Dow 1.3%, while the dollar and U.S. Treasury bonds rose alongside gold on flights to safety.

The other precious metals were also strongly higher, with silver gaining 1.2% while platinum and palladium added 1.7% and 1.9%, respectively.

At the Comex close: December gold surged $20.80 to 1,137.80; December jumped 18 cents to $15.16; October platinum picked up $16 to $984.40; and December palladium added $11.65, to $610.85 an ounce.