Gold price rises 1.7pc to record

"The Fed language helped gold as a hedge to stockmarket volatility. This means that portfolio managers will be cement grinding mill flow diagramkeeping gold in their portfolios through to 2013," said George Gero, vice-president with RBC Capital Markets Global Futures.

Gold lived up to its "safe harbour" label, jumping nearly $US25 above its record settlement price in the minutes following the report while stock markets quickly shook off initial losses. Gold is widely considered a refuge from economic uncertainty because it keeps its value better than other assets in the face of volatility. Gold futures had finished floor trade with both the front-month and most-active contract settling at record-high prices. The Federal Open Market Committee's statement comes a day after the Dow Jones Industrial Average took a 635-point plunge on the heels of Standard & Poor's downgrade of the US credit rating. The FOMC eschewed bolder steps, like buying more...