"Gold is rallying as the Fed is not exiting its stimulus program. We are going to have cheap money and low interest rates for a long time," said Axel Merk, portfolio manager of California-based Merk Funds, which has around $500 million in currency mutual-fund assets.
After the Fed announcement, gold's gains far outpaced other markets, with the S&P 500 equities index around up 1 percent and the Thomson-Reuters CRB index also up nearly 1 percent.
The metal is a traditional hedge against inflation and economic uncertainty brought by central-bank actions.
Spot gold was last up 2.9 percent to $1,346 an ounce. It rebounded about $45 or 3 percent from a six-week low at $1,291.34 earlier in the session. U.S. gold futures for December delivery settled $1.80 lower at $1,307.60 an ounce prior to the Fed statement, with trading volume at about 20 percent above its 30-day average, preliminary Reuters data showed.
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