Gold jumps following Fed decision

A one-kilogram silver bar sits at Gold Investments Ltd. bullion dealers in London, U.K., on Wednesday, July 29, 2020.
Chris Ratcliffe | Bloomberg | Getty Images

Gold prices jumped on Wednesday, hitting their highs of the day following the Federal Reserve's decision.

Spot gold rose 0.75% to $1,744. U.S. gold futures also advanced 0.8% to $1,745.

The Federal Reserve on Wednesday sharply ramped up its expectations for economic growth but indicated that there are no expected interest rate hikes through 2023 despite an improving outlook and a turn this year to higher inflation.

Gold prices have come under pressure this year as a recent spike in 10-year U.S. Treasury yields weighed on the non-yielding commodity.

"From a technical point of view, a clear climb above $1,740 would open space for further gains, while a decline below the $1,700 mark will show weakness," ActivTrades chief analyst Carlo Alberto De Casa said.

Silver rose 1.3% to $26.30 an ounce. Palladium futures fell slightly and platinum futures rose nearly 3%.