Gold Futures Up $10 From The Settlement As Investors Parse Fed Statement

By Markets MarketWatch Pulse

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.

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