The upward drive was prompted by the policy making arm of the U.S. Federal Reserve stating it intends to preserve low interest rates for nearly three years. The body also alluded to additional practices of economic stimulus to benefit the U.S. economy as the globe's largest economic system recovers from a deep recession and staves off a run through a double-dip recession.
"The strong rally in gold changed what prior to the announcement had been a test of gold's resolve," senior manager Ole Hansen with Saxo Bank told the news source. "The Fed statement changed all that, and from thinking that the gold rally potentially only had one year left to run, it could now continue for longer. The 'off' button on the printing press has well and truly been taped over."
At 7:46 a.m. on Thursday, gold futures increased 1.04 percent, a $17.70 gain to $1,720.70 per troy ounce.
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