Gold rose Wednesday after the Federal Reserve said it would keep its key interest rate near zero, stoking fears of a weaker dollar and inflation.
Gold for June delivery rose $13.60 to settle at $1,517.10 an ounce after the Fed made its announcement and continued rising in after-market trading. Silver for May delivery rose 90.8 cents to settle at $45.958 an ounce.
While the Fed said it would end its program of buying Treasury bonds on schedule, its policy of supporting the economy through low interest rates prompted traders to buy gold and silver futures as a hedge against inflation.
To nurture the economic recovery, the Fed said Wednesday it will hold its key interest rate at a record low near zero for an "extended period."
The Fed also said it's continuing a separate support program. It's reinvesting about $17 billion a month in proceeds from its portfolio of mortgage securities to buy Treasury debt. That should help keep rates low on mortgages and other consumer loans.
Other metals were mixed. July copper fell 9.1 cents to settle at $4.228 a pound and July platinum rose $13.80 to $1,819.20 an ounce.
In other trading, grains and beans fell. In contracts for July delivery, corn settled at $7.5925 a bushel, wheat fell 35 cents to $8.12 a bushel and soybeans fell 4.75 cents to $13.845 a bushel.
Benchmark crude for May delivery rose 55 cents to settle at $112.76 per barrel on the New York Mercantile Exchange.
