Gold jumps on dovish Fed

(MENAFN- ProactiveInvestors)A dip in the dollar after the dovish conclusion of the latest Federal Reserve meeting helped gold to its best day in weeks. Not only did US interest rates not go up but Fed chair Janet Yellen indicated there was no set pattern for interest rate rises with any decision dependent on the data. With talk ahead of the meeting of a rise in September and another possibly in December traders rushed to closed positions in both the dollar and gold. Many economists still expect US interest rates to rise in September but the debate today was whether Janet Yellen is a supporter of one increase or two in 2015. If one they argue any increase might even be put back to December. For gold theory would suggest the longer the delay better if it caps the US dollar the metals traditional hedge. Though not all agree. Commerzbank said it expects rates to rise in September: 'Until then the gold price is unlikely in our opinion to make any significant gains because of the uncertainty surrounding this question. 'What is more the currently weak investment demand and subdued physical demand are likely to prevent gold rising lastingly above the $1200 per troy ounce mark again.' An hour into trading on Wall Street spot gold was trading US$17 higher at US$1202 silver was US$0.28 better at US$16.41 while platinum added US$9 to US$1088. Major movers Randgold Resources up 87p to 4514p Fresnillo up 7p to 719p Anglo American up 21p to 987p