Gold, oil surge after Fed keeps stimulus in place

Gold, oil prices surge after Federal Reserve keeps economic stimulus program in place

Associated Press

Gold and silver prices are sharply higher after the Federal Reserve surprised investors with a decision to keep its economic stimulus program in place.

Gold was up $52.40 or 4 percent, to $1,361.80 an ounce in late trading Wednesday. Silver jumped $1.32, or 6 percent, to $23.11.

Investors anticipated that the Fed's continuation of its huge bond-buying program could cause inflation and weaken the dollar, two factors that cause gold and silver to appreciate.

Other commodities prices also rose and the dollar fell against other currencies.

Crude oil rose $2.65 or 2.5 percent, to $108.07 a barrel in New York, the biggest gain in three weeks.

Oil also rose after the Energy Department reported that supplies of crude and gasoline fell more than expected last week.

Crop prices edged higher.

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