Gold Hits New High After Fed Meeting

Gold futures rallied to another new all-time high of $1,524.20 per ounce following today’s Federal Reserve meeting. This morning, gold futures held onto modest gains near $1,510, but eclipsed their previous record high of $1,519.20 following the FOMC statement.

In the Federal Reserve’s announcement, Chairman Bernanke and the Fed maintained their dovish stance on monetary policy in spite of rising inflationary risks to the U.S. economy.  The Fed left in the key “extended period” language with respect to leaving interest rates near zero levels, and noted that the labor market is improving only gradually, while the housing market remains depressed.

With many expecting the Fed to assume a more hawkish stance at today’s meeting, the rally in gold indicates that the markets were caught a bit off guard with how dovish the central bank chose to remain.

(Source: http://www.goldalert.com/2011/04/gold-hits-new-high-after-fed-meeting/)