2013.09.1906:04:57UTC+00Gold increases 4% after Fed stands pat

Gold futures charged higher in electronic transaction Thursday, joining in a broader-market purchasing blitz that was prompted by the Federal Reserve’s surprise move a day earlier to keep the cash flowing.

December gold advance $56.70, or 4.3%, to $1,364.30 an ounce. Silver fared even better, shooting up $1.63, or 7.6%, to $23.20 an ounce. Underpinning the gold purchasing, the dollar pulled back to its worst point since early this year.

Gold on Wednesday in regular-session trade on the New York Mercantile Exchange remained in a decline, settling down fractionally at $1,307.60 an ounce before catching fire in electronic transaction thanks to the Fed’s declaration to continue the pace of its bond purchasing program.

One analyst warned that the jitters might not stay away long.

“It could well be that after a short rally in the aforementioned markets, the unresolved trader and investor uncertainty of the timing of any Fed monetary policy change again pervades the market place,” wrote Kitco.com senior analyst Jim Wyckoff late Wednesday. “That’s not happening just yet.”

Also rallying, December palladium skyrocketed $21.20, or 3%, to $724.30 an ounce. October platinum tacked on $45.10, or 3.2%, to $1,470.30 an ounce in electronic transaction.