Gold futures rallied on Wednesday and crossed the psychological barrier of $1,700 per ounce as the US dollar declined and US Fed announced to keep the interest rate at their lowest.

Managing director, Jeffery Wright from Global Hunter Securities commented, “It looks like someone awoke to the fact that loose monetary policy will eventually impact the value of the dollar and allow gold to move higher.”

Gold futures contract for February delivery jumped 2.1 percent or $35.60 to settle at $1,700 per ounce on the Comex division of the New York Mercantile Exchange. As compared to Tuesday, the gold futures contract was down by $13.80 in regular Comex session.

tWeaker dollar further exerted pressure on the commodities as The dollar index DXY which measures the US dollar’s performance versus its major rival currencies fell to 79.660 on Wednesday as compared to 79.853 on Tuesday’s North American trading session.

Silver futures contract for March delivery gained 3.6 percent or $1.15 to settle at $33.12 per ounce while copper futures for the same month delivery advanced 0.6 percent or $0.022 to settle at $3.83 per pound.

Platinum futures for April delivery surged 1.8 percent or $27.20 to settle at $1,579.60 per ounce while palladium futures for March delivery soared 1.9 percent or $12.80 to $693.35 per ounce.