Gold has risen above the $18,000 mark in India, the US and Germany, as investors look for a better return than the Fed’s 2% inflation target.
Gold prices have risen as much as 10% over the past year, according to the US Commodity Futures Trading Commission (CFTC).
Gold has surged over the year to $1,082 an ounce, making it the second-most valuable asset in the world, according a Bloomberg report.
Gold has risen over the last 12 months, from a mere $1.19 to $2,095 an ounce.
It has risen more than 20% in the last year alone.
Gold is currently trading at $1 at 3:55pm ET on Monday, just over two hours after the US central bank released its policy statement on Monday.
Gold futures rose as much the next day as markets saw the Fed release its policy.
The US central banks monetary policy meeting is being watched closely by the markets.
It comes as China is seeking to bolster its market strength ahead of a new round of national elections, and amid a potential economic slowdown.
Gold rose to a new high at $18 per ounce in the first hour of trading on Monday as investors looked for a stronger return than their inflation target, according the Reuters news agency.
Gold fell as much last week as investors feared that the Fed will hold off on tightening monetary policy.
Gold was trading around $18 last week, down from $21 a week earlier.
The precious metal has also gained over the years.
Gold rallied in July as investors sought to bolster their portfolios ahead of the presidential election.
Gold had been trading around its peak of $27 per ounce at the end of last year.
Gold surged by 5.6% in 2016 to hit an all-time high of a record $27,836 per ounce.
Gold stocks surged as much in 2017 as in the year prior.
Gold plunged last week after a report that the Federal Reserve was likely to raise its benchmark interest rate.
Gold jumped as much during the year as in 2016, hitting an all time high of nearly $22,000 an ounce in October.
Gold climbed in 2016 as investors saw the US economy slowing and a slowing China as the major threat to global growth.
Gold soared last week.
The Federal Reserve is set to raise interest rates for the first time in six years on Monday at a meeting in Washington.
The gold market is currently at a new record high of about $20,000 per ounce, according Bloomberg News.
The USD has traded around $24,900 per ounce since the end (Jan. 9) 2016, according data from Bloomberg.
Gold shares have risen on the news.
Gold, which has a market capitalisation of $7.8 trillion, has risen by 20% over last year, when it was just above $15,000.
Gold stock is currently priced at around $21,000 in India.
Gold and silver have both surged in 2017.
Gold spiked last week when investors believed that the US Fed would raise interest rate in response to a slowdown in China’s economic growth.
Gold rose to $21.15 an ounce on Monday before the Fed released its statement.
Gold’s rally has seen gold price rise by a whopping 23% in 2017, compared to a 7.6%, 7.1% and 6.8% rise for gold in 2016.
Gold also rose in 2016 after the Fed raised interest rates in December.
The rally has been driven by the Fed raising interest rates to keep inflation in check, and by gold surging in the past three months.
Gold markets were buoyed by the Federal Open Market Committee’s (FOMC) decision to increase its benchmark policy rate to 1% from the previous 2%.
Gold prices also rallied as investors rushed to cash out of stocks ahead of their elections in November, with the Dow Jones Industrial Average up almost 3% on Monday to a record high.
Gold peaked at $25,800 per ounce last September, a price high of almost $60,000 a ounce.
The benchmark index of gold prices has soared to a price of $32,700 a ounce in 2017 to date.
Gold investors were particularly keen to cash in on the Fed interest rate increase as it came in the wake of a weaker US economy.
Gold prices rose by 6.6 times over the course of 2017, according, Bloomberg.
Ahead of the Fed meeting, investors had hoped that the Trump administration would tighten monetary policy in the coming months.
But with the election less than two weeks away, investors have been less optimistic on the chances of the Federal Government raising interest rate before the November elections.
In 2016, investors thought the Fed would continue to hike rates until at least the end-of-2019, when interest rates would begin to climb.
Gold hit a record low of $23,800 in December 2016.
It surged to a high of around $30,000 as it took a beating following the Brexit vote