Gold, silver are up after Yellen backs off hike

Spot gold spiked to $1,334 an ounce, a two-week high, after the Federal Reserve announced there would be no rate hike in September.

The Federal Reserve, chaired by Janet Yellen, said it is maintaining the current target rate for the federal funds rate at 1/4 to 1/2 percent.

Silver also gained topping at $19.80.

The Fed said factors were pushing it to raise the rate, such as solid job gains and increase household spending. However, inflation is running below the committee's 2% percent longer-run objective and business fixed investment remains soft.

"The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," said the Federal Reserve in a statement.

"The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation."

Creative Commons image of Janet Yellen by Day Donaldson

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