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Updates gold prices after FOMC announcement




Gold prices

pop as the Fed keeps interest rates unchanged.

In the

Federal Reserve's

latest FOMC

meeting, rates remain steady between 0-.25%. The Fed reiterated its pledge to keep interest rates low for an extended period of time putting


worries on the back burner.

Inflation fears shook markets in trading Tuesday after the

producer price index jumped

1.8% in November. During times of inflation, the U.S. dollar loses value and investors buy

gold as an alternative asset

buoying prices. The longer the Fed leaves rates unchanged the bigger the likelihood of inflation is down the road.

Analysts expect gold to stay in a tight range of $1,110 to $1,140 for the end of the year as profit taking and bargain hunting restrict prices. "I think we're seeing light volume in the market as a start", says Will Rhind, head of U.S. operations at ETF Securities. "Expect to see more concentration on inflation numbers over the next year as people look for any signs of consumer prices in the real economy."


U.S. dollar index

was slipping .12% to $76.82 and inversely gold prices were up $16 to $1,139 at the Comex division at the New York Mercantile Exchange. Gold deliver for February has traded as high as $1,140.60 and as low as $1,122.40.

Silver prices

were rising 30 cents to $17.75 while copper was up 6 cents to $3.20.

Mining stocks, a more leveraged way to

invest in gold

, were finding some strength.

Barrick Gold


TheStreet Recommends


Newmont Mining

(NEM) - Get Newmont Goldcorp Corporation (NEM) Report

were both higher trading at $40.24 and $51.08 respectively. Shares of

Freeport McMoran Copper and Gold

(FCX) - Get Freeport-McMoRan, Inc. (FCX) Report

were rising 1.72% to $79.42 while

Yamana Gold

(AUY) - Get Yamana Gold Inc. Report

was up 1.59% to $12.19.

Randgold Resources

(GOLD) - Get Barrick Gold Corporation Report

, contributors L.A. Little's

favorite gold stock

, was rising 2.65% to $82.14.

Eldorado Gold

(EGO) - Get Eldorado Gold Corporation Report

was higher by 4% to $13.71 after

TD Newcrest

increased it price target on the stock from $15 to $16. However, the stock was downgraded from a buy to hold.

Shares of

SPDR Gold Shares

(GLD) - Get SPDR Gold Trust Report

were rising slightly to $111.49. Volume has been in slow decline this week as the holiday season approaches.

>>Slideshow: How to Invest in Gold

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Written by Alix Steel in New York