Gold Surges to $1314 on Short Covering

Gold settled at a two month high on Thursday as a drop in the dollar and a lack of commitment by the U.S. Federal Reserve to raise interest rates sent metal investors rushing to buy back their bearish bets.

The rally in bullion marked its biggest one-day gain in eight months. Silver jumped as much as 5 percent, while platinum and palladium also climbed as new hurdles emerged to settling South Africa’s mining strike.

Gold was boosted by the U.S. dollar index’s tumble a day after the Fed signaled it will stick with a near-zero interest rate policy to support the economy, disappointing traders who had bet on hints of policy tightening.

CNBC

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