Chicago:(IANS) Gold futures on the COMEX division of the New York Mercantile Exchange settled sharply higher on Friday following the US central bank’s decision to keep interest rate unchanged a day earlier.

The most active gold contract for December delivery rose $20.8, or 1.86 percent, to settle at $1,137.8 per ounce, Xinhua reported.

After a two-day policy meeting, the US Federal Reserve announced late on Thursday to let its policy rate unchanged by keeping its benchmark short-term rate near zero, amid concerns about a weak global economy, low US inflation and recent turmoil financial markets.

The US dollar fell sharply following the Fed’s announcement, while gold reacted very positively.

Analysts note gold and the US dollar typically move in opposite directions, that means a weaker US dollar can be a positive for commodities including gold, which is priced in the US dollar because it makes them more expensive for non-dollar investors.

For the week, December gold saw a gain of more than 3 percent.

Among other metals, silver for December delivery rose 17.9 cents, or 1.19 percent, to close at $15.163 per ounce. Platinum for October delivery added $16, or 1.65 percent, to close at $984.4 per ounce.