NEW YORK ( TheStreet) -- Gold prices continue to advance a day after a key statement from the FOMC was released, but were slightly off earlier highs.

The statement -- which suggested the possibility of additional quantitative easing and said policymakers would be keeping the target fed funds rate at a low 0% to 0.25% -- provided investors with more direction on the economy and "triggered a surge in risk appetite with gains seen across the equities and commodities," TheBuillionDesk.com analyst James Moore remarked in his daily note.

Meanwhile, Kitco analyst Jon Nadler said that the "subtle" language the Fed used regarding additional accommodation and preparedness "unleashed a torrent of dollar sellers and additional gold buying" through the overnight hours.

Rates being kept lower were contributing to downward pressure on the dollar and to money being poured into gold and other precious metals and precious metals ETFs from around the world. "All the action in gold looks to be in the dollar right now," Adrian Ash of BullionVault.com said in a note.

Gold for December delivery was rising $16.80 to $1291.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Monday has traded as high as $1,298 and as low as $1,287.50. The U.S. dollar index was down 0.7% to $79.87 while the euro rose 0.8% to $1.34 vs. the dollar. The spot gold price was adding more than $2, according to Kitco's gold index.

Earlier, gold for December delivery was up $20.80 and spot gold was rising more than $7.

Wayne Atwell at Casimir Capital said with gold hitting highs for the fifth time in a row between this week and last week, people were starting to take profits. Atwell added that gold prices have fallen into a pattern where "every day we seem to break new highs," followed by profit taking. His project range for gold prices is $1,200 to $1,325.

Wayne said gold has been the the only commodity that's been hitting an all-time high; this has not been seen in silver, natural gas and oil. It's the "one asset that's working right now," and it looks good technically, he said.

He added that with the government worries about inflation being too low and rates likely to stay low; its desire to kick-start housing; and this continued to pressure on the dollar, "non-interest bearing investment like gold looks more attractive."

Many analysts believe that gold will continue to be pushed higher and won't have much trouble breaking $1,300. Ash of BullionVault.com said until the fundamental case for gold unravels -- and with no major economy currently offering positive real returns to cash -- it's highly possible that "a growing volume of private savings will continue to bid up gold's protection.

TheBuillionDesk.com' Moore said economic data due for release on Wednesday and other events worth looking at include EU Industrial New Orders and Consumer Confidence, U.S. House Price Index and Crude Oil Inventories, Treasury Secretary Geithner's talk, and the Bank of England's release of minutes from its last monetary policy committee meeting.

Silver prices were up 39 cents to $21.03 while copper prices were trading 8 cents higher at $3.56.

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Gold mining stocks, a more risky but more profitable way to invest in gold were trading flat to higher.

Yamana Gold ( AUY) was rising 0.5% to $11.01 and AngloGold Ashanti ( AU) was higher by 1.2% to $45.20.

Gold Fields ( GFI) was inching up 0.2% to $15.19 and SPDR Gold Trust ( GLD) was flat at $125.95.

-- Written by Andrea Tse in New York.

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