Gold futures jumped in electronic trading late Wednesday after the Federal Reserve left interest rates unchanged and hinted at a rate increase as early as September. Traders interpreted the Fed's updated policy statement as emphasizing a reluctance to lift rates too quickly, in the wake of the U.K.'s decision to exit the European Union, which can be supportive for gold futures. December gold , the most active contract, was at $1,344.70 an ounce in electronic trade, up from the $1,334.50 settlement. "Speculation that the Fed might broadcast a more hawkish tone did not materialize," said Michael Armbruster, principal and co-founder at Altavest. But "either way, going in to today's Fed announcement was likely a win/win for gold. If the Fed had sounded more hawkish, stocks might have reacted more negatively and that would have supported gold," he said.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.