On Sept. 19, the price of gold surged more than $64 to approach $1,400 an ounce, in what analysts called a response to the Federal Reserve’s announcement that it didn’t plan to end its monetary stimulus.
Before press time, the yellow metal was trading at $1,374 an ounce. The widely watched commodity had slipped below the $1,300 benchmark on Wednesday, as traders expected that the Federal Reserve would announce an end to “qualitative easing,”
However, Federal Reserve chairman Benjamin Bernanke’s surprise announcement that the Fed was not changing course led to a sudden surge, reports said.
“Gold is rallying as the Fed is not exiting its stimulus program,” Axel Merk, portfolio manager of California-based Merk Funds, told CNBC. “We are going to have cheap money and low interest rates for a long time.”
Gold is still down for the year, having begun 2013 at more than $1,600 an ounce.