- Fed keeps interest rates unchanged at 1-1.25 percent.
- Palladium hits over two-week high.
- Gold's move higher accelerates on break of 100-day moving average.
Gold advanced on Wednesday as traders repositioned themselves after the Federal Reserve said it will keep target interest rates unchanged for the time being.
Prices held onto earlier gains after statements from the U.S. central bank indicating that while it would leave rates unchanged, it was on track to lift borrowing costs again in December.
The Fed will leave rates unchanged at 1-1.25 percent. Gold is highly sensitive to rising U.S. interest rates, as these lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
Spot gold was 0.33 percent higher at $1,275.37 an ounce by 3:51 p.m. EDT, having earlier peaked at $1,280.87. Its upward move accelerated after it broke through its 100-day moving average at $1,275 an ounce, a key chart level.