Gold Hits New Record High After Fed Announcement (GLD)

Gold hit a new record high Tuesday afternoon, after the Federal Reserve announced that it would hold interest rates steady and expects the economic recovery will remain "modest." Spot gold prices hit $1,286.30 an ounce after the news, and the SPDR Gold Trust ETF GLD surged more than 1%. The ETF is now up 0.7% for the day, to $125.69. The Federal Reserve Statement notes that "Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak." The statement notes that "The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate." A Reuters report notes that "Investment demand for gold remained healthy, with holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, rising another 3.65 tons on Monday to 1,304.472 tons." The Futures & Forex Expo is approaching. Learn Free Money-Making Strategies to Use Now