The broader U.S. equity markets staged a remarkable rally Tuesday afternoon following the Fed’s statement, as the Dow Jones Industrial Average (DJIA) surged higher to close up 429.92 points, or 4.0%, at 11,239.77.
The Dow initially fell by nearly 200 points after the release of the FOMC announcement, but quickly rebounded as very oversold conditions lead to short-covering and bargain hunting by traders.
With its 4.0% rally, the Dow posted its largest single-day gain in over two years.
Gold futures remained in positive territory this afternoon, initially rising to $1,780 per ounce, within a fraction of its $1,782.50 all-time record high.
However, at approximately 3:50pm ET, the yellow metal tumbled from $1,760 to $1,730 per ounce. Gold’s slide corresponded with an acceleration of the rally in cyclically-sensitive asset classes.
As the U.S. equity markets came to a close, gold futures stabilized near $1,740 per ounce.
The AMEX Gold Bugs Index (HUI) rebounded alongside the broader market, finishing higher by 4.5% at 549.84.