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1st LD Writethru: Gold sharply rallies after U.S. Fed leaves interest rate unchanged

Xinhua, September 19, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange settled sharply higher Friday following the U.S. central bank's decision to keep interest rate unchanged a day earlier.

The most active gold contract for December delivery rose 20.8 U.S. dollars, or 1.86 percent, to settle at 1,137.8 dollars per ounce.

After a two-day policy meeting, the U.S. Federal Reserve announced late Thursday to let its policy rate unchanged by keeping its benchmark short-term rate near zero, historically low levels, amid concerns about a weak global economy, low U.S. inflation and recent turmoil financial markets.

The U.S. dollar fell sharply following the Fed's announcement,while gold reacted very positively. Analysts noted gold and the U.S. dollar typically move in opposite directions, which means a weaker U.S. dollar can be a positive for commodities including gold, which is priced in the U.S. dollar because it makes them more expensive for non-dollar investors.

For the week, December gold saw a gain of more than 3 percent.

Among other metals, silver for December delivery rose 17.9 cents, or 1.19 percent, to close at 15.163 dollars per ounce. Platinum for October delivery added 16 dollars, or 1.65 percent, to close at 984.4 dollars per ounce. Endit