Gold futures rallied Thursday to settle at their highest since September 2013, as the U.S. Federal Reserve hinted at the likelihood of interest-rate cuts. "While we think the explosion in gold prices is an overreaction to news that the Fed was moving closer to cutting interest rates, the gold market was already putting together a classic bull market case last month with one of the key hallmarks the potential emergence of investment demand.," analysts at Zaner Metals said in a daily note. Also, "news that Iran shot down a U.S. military drone rekindles the potential for a heavy-handed U.S. response against Iran," the analysts said, raising demand for haven gold. August gold rose $48.10, or 3.6%, to settle at $1,396.90 on Comex. Based on the most-active contracts, that was the biggest one day dollar and percentage climb since June 2016, according to Dow Jones Market Data.
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Gold jumps nearly 4% to settle near five-year high in reaction to Fed decision