Gold Rips Higher as Fed Maintains Stimulus (Update 1)

Updated from 10:27 a.m. ET with price changes and Fed announcement

NEW YORK ( TheStreet) -- Gold prices were surging Wednesday after the  Federal Reserve announced it wouldn't curb the pace of its economic stimulus program.

Gold for December delivery on Globex electronic trading was spiking $57.50 to $1,365.10 an ounce. The gold price traded as high as $1,367.80 and as low as $1,291.50 an ounce, while the spot price was jumping $59.13.

The Fed's policy-making arm said it would continue each month to purchase $40 billion in mortgage-backed securities and $45 billion in longer-term Treasuries.

Gold traders viewed the Fed's decision as positive for gold, because they regard the Fed's asset purchases as inflationary. Many investors hold gold as a hedge against inflation.

Silver prices for December delivery were surging $1.58 to $23.14 an ounce, while the U.S. dollar index was plunging 1.2% to $80.17.

-- Written by Joe Deaux in New York.

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