Gold futures rally in electronic trading as the U.S. dollar drops after the Fed announcement

Gold futures rallied Wednesday afternoon in electronic trading, after ending the regular trading session with a modest gain. Prices for the precious metal got a boost as the U.S. dollar weakened in the wake of the Federal Reserve’s decision to leave interest rates unchanged. The ICE U.S. Dollar Index
DXY,
-0.89%
was down 1% at 102.78. A weaker dollar can boost demand for dollar-denominated commodities such as gold. In a press conference, Fed Chairman Jerome Powell said Fed officials don’t want to take further rate hikes ‘off the table,” but also said officials don’t think further rate hikes are likely. February gold
GCG24,
+2.41%
was at $2,030.80 an ounce in electronic trading. The contract had climbed by $4.10, or 0.2%, to settle at $1,997.30 an ounce on Comex Wednesday.