Gold extends gains, rises to seven-week high
Gold prices rose to their highest level in seven weeks, as the demand of precious metals buyers remained strong the day after the Federal Reserve Bank announced its interest rate plans.
Comex gold futures scheduled for April delivery rose to as high as $1,734.50, which was the highest value experienced by a most-active contract since December 8, according to Bloomberg. The contract later pared its gains to trade at $1,731.50 an ounce at 10:15 a.m. in New York.
Reuters reports that spot gold rose by as much as 1.1 percent to reach $1,729.76 an ounce, which was its highest level in more than six weeks, before declining to reach $1,726.10.
"The strong rally in gold changed what, prior to the (Fed's) announcement, had been a test of gold's resolve," Saxo Bank senior manager Ole Hansen told the media outlet. "The Fed statement changed all that and from thinking that the gold rally potentially only had one year left to run, it could now continue for longer."
The U.S. dollar dropped to its lowest point in six weeks, which could have impacted the decisions of precious metals buyers, according to Bloomberg.
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