Bloomberg reports the Fed will keep the target rate for intra-bank overnight lending between zero and 0.25 percent. QE2, the central bank's bond buying program more commonly known as quantitative easing, will run its course through June.
"The tone from the Fed remains dovish with a continued focus on maintaining growth in the economy and conviction to complete QE2," according to Daniel Brebner, a London-based analyst at Deutsche Bank. "This is resulting in further weakness in the U.S. dollar. Also, inflationary threats may be seen to be building as the Fed continues to sit on the sidelines. This is pushing gold and silver higher today."
At 8:27 a.m. on Thursday, gold futures gained 0.67 percent, a $10.20 lift to $1,527.30 troy ounce. The yellowish metal's top value now stands at $1,534.05 per troy ounce.
"Gold remains in a stable uptrend," according to a monthly report written by Tobias Merath, Zurich-based head of commodity research at Credit Suisse. "We expect to see a renewed increase in investment demand over the coming month."
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