Gold bugs were called back into action Thursday as the market digests the fact the Federal Reserve didn’t scale back quantitative easing as widely expected.
The price of gold futures for December trading on New York’s Comex rose 4.6% to $1,367.70 on Thursday, the metal’s biggest gain since 2009, says Bloomberg News. Gold for immediate delivery trading in London added 0.3% to $1,368.01, after jumping 4.1% on Wednesday, the biggest one-day leap since June 1, 2012.
After suffering a vicious decline this year gold prices are suddenly soaring, following the Federal Open Market Committee saying Wednesday it will continue its push to buy $85 billion of debt securities a month.
Investors poured into gold between late 2008 and mid 2011 as the Fed injected trillions of dollars into the economy. Gold investors speculated the government’s intervention and stimulus would spark inflation, which is bullish for the yellow metal.
Gold set a record of $1,921 an ounce on Sept. 6, 2011, and jumped more than 70% between December 2008 and June 2011, Bloomberg News says. But gold prices have slipped this year as investors expected the Fed to pull back on stimulus.