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Gold futures climb in Asian trade

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Forexpros - Gold futures continued to rise in mid-day Asian trade Wednesday, dropping from record highs but settling higher as the U.S. Federal Reserve announced it would be maintaining its current ultra-low interest rates.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,757.35 a troy ounce during Asian mid-day trade, up 1.14%.

Earlier in the day, gold jumped to USD1,768.05, after topping USD1,700 an ounce for the first time Monday in the aftermath of Standard & Poor's U.S. credit rating downgrade from AAA to AA plus.

Meanwhile, the U.S. Federal Reserve voted to sustain an easy money policy and extend current interest rates until the middle of 2013. The Fed revised its June meeting forecast for U.S. economic growth saying it expected a much slower rate of recovery.

Profit takers dug in to gold positions in a volatile session following two-straight days of record gains that saw the precious metal rise by nearly 5%. Gold has gained 13% since the end of June..

J P Morgan on Monday said it was forecasting spot gold to hit USD2,500 an ounce by the end of the year following the downgrade of U.S. credit. The bank called its previous estimate of USD1,800 "too conservative".

Elsewhere on the Comex, silver for September delivery rose 2.06% to trade at USD38.44 a troy ounce, while copper for September delivery declined 0.16% to trade at USD4.036 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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