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Gold futures hit highest level since Sept. 9 after Fed decision

PROSPECTING GOLD
AP

Gold futures prices hit highest level since September 9th after the August Fed meeting on Wednesday.

The U.S. Federal Reserve kept rates unchanged.

Spot gold was up 1.4 percent at $1,333.03 an ounce. U.S. gold futures climbed 1.4 percent to $1,337.00 an ounce.

Gold miners also hit highest level with 6.4% since June 3rd.

Earlier today, gold had already edged higher after the Bank of Japan adopted a target for long-term interest rates.

Gold climbed along with stock markets after the Bank of Japan overhauled its monetary policy framework, switching to targeting interest rates and sidelining more than three years of massive money printing.

"Against the backdrop of prevailing bullish sentiment in the gold futures market and fading safe-haven demand, prices should come under pressure again and move below $1,300 per ounce," analyst Carsten Menke at Julius Baer in Switzerland said.

"This is not least due to the fact that Asian gold demand remains very weak."

Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, slid 0.41 percent to 938.75 tonnes on Tuesday.

The dollar index, which measures the currency against six major currencies, pared gains and a touch weaker at 95.52 after falling 0.50 percent.