Gold prices shot higher early Thursday, resuming the climb seen in after-hours electronic trading when the U.S. dollar weakened in the wake of the Federal Reserve’s dovish policy statement.
The dollar gave back much of its post-Fed loss by early Thursday, although the precious metals that are priced in the U.S. unit maintained their rally.
Gold for April delivery rose $14, or 1.1%, at $1,315.70 an ounce on Comex, about where it stood in reaction to the Fed release.
The dollar, as measured by the ICE U.S. Dollar Index was up 0.3%. A weaker dollar can boost investment interest in dollar-denominated prices of gold from investors using other currencies, and vice versa.