Gold tiptoes higher after Fed move, correction seen
(Reuters) – Gold edged higher to fresh six-month highs on Friday after the U.S. Federal Reserve unleashed a long-awaited stimulus program, but some analysts expected the market to take a breather before tackling further gains.
Gold’s rise was modest on Friday after jumping 2 percent on Thursday and a total of 10 percent over the past month, largely in anticipation of the easing move by the U.S. central bank.
On Thursday, the Fed launched an open-ended mortgage debt buying program and pledged to keep interest rates near zero until at least mid-2015.
Silver, platinum and palladium, widely used in industrial applications, also climbed to their highest in about six months, as the appetite for riskier assets rose after the Fed move.
Spot gold added 0.2 percent to $1,769 an ounce by 8:40 a.m. EDT (1240 GMT) after climbing to an intraday peak of $1,777.51, its highest since February 29.