By: Taarek Refaat
WASHINGTON, Jan. 31 (SEE)- Gold prices have stabilized, having recorded earlier their highest level in nine months after the Federal Reserve kept interest rates unchanged.
Spot price settled at $ 1320.01 an ounce, after having recorded $ 1326.30, its highest level since April, earlier in the session.
The yellow metal ended this month with gains of about 3 percent.
The Fed kept interest rates unchanged, saying it Will be patient to raise borrowing costs once more this year.
The dollar index, which tracks the performance of the greenback against a basket of other major currencies, fell after the Fed issued cautious statements over a weaker economic forecast.
The index continued to fall after data showed the growth of unemployment in the US, fueling worries of an economic slowdown and a lower purchasing power.
Gold prices usually increase after expectations of lower interest rates, which reduces the opportunity cost for holders of a metal that does not yield regularly.
Demand for the precious metal rose 4 percent last year as the federal reserve purchases touched its highest level since 1967.
Silver spot price fell 0.4 percent to record $ 16.00 an ounce, after hitting $ 16.19 last July.
Palladium also fell 1.4 percent to record $ 1341.50 an ounce, while platinum fell 0.1 percent.