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With no Fed tapering in sight, gold gains 4 percent

AP

Gold has rallied 4 percent, or over $50, since the FOMC statement Wednesday and continued to gain ground in after-hours trading, making further gains to a session high of $1,367.80 an ounce.

In his commentary, Federal Reserve Chairman Ben Bernanke reiterated a concern for the economy and weakness in the labor market. As a result, he indicated the Fed will remain highly accommodative until the economy improves significantly.

Traders responded to the surprising news, sending broader stock markets to new record highs and helping gold break through key technical levels.

Some gold traders say this means the Fed may not be taper at all this year.

"In the short-run, in light of this afternoon's rally, a test of the $1,425 level cannot be ruled out," said Kitco Metals Global Trading Director Peter Hug.

(Read more: Why Bernanke may have ended gold's bear market)

Other traders say gold could make a run for $1,500 an ounce by the end of the year. It's not a time to short gold, they say. Still, the bevy of Fed officials speaking over the next few days should help provide more context to the Fed's inaction and may result in more volatility in the gold market.

Traders warn that taper concerns will remain in the background and that any good economic numbers could put pressure on metals, but the primary focus may now turn to the debt ceiling debates.

—By CNBC's Sharon Epperson. Follow her on Twitter: @sharon_epperson

  • Patti Domm

    Patti Domm is CNBC Executive Editor, News, responsible for news coverage of the markets and economy.

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

  • CNBC Personal Finance Correspondent

  • JeeYeon Park is a writer for CNBC.com. Follow her on Twitter: @JeeYeonParkCNBC

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.

  • Senior Producer at CNBC's Breaking News Desk.