Gold rises after Fed announcement

(FILES) Gold bullion is displayed at Shi
(FILES) Gold bullion is displayed at Shinhan Bank in Seoul 09 January 2004. Gold struck a new all-time peak of almost 868 dollars 03 January 2008on the London Bullion Market as the precious metal benefited from its safe-haven status amid record high oil, a struggling dollar and Pakistan tensions, analysts said AFP PHOTO/JUNG YEON-JE (Photo credit should read JUNG YEON-JE/AFP/Getty Images)
Photograph by Jung Yeon-Je — AFP/Getty Images

Gold prices climbed after the Federal Reserve decided not to raise interest rates Thursday, upholding an almost-ten-year streak of holding interest rates near zero.

After the announcement, gold prices rose $1,131.20 per troy ounce, according to the Wall Street Journal. In recent months, gold hit five-year lows as Wall Street expected the Fed to raise rates. Gold doesn’t pay interest–a characteristic that would drive away investors if rates rose.

Since April 2013, more than $53 billion has been wiped from the value of securities backed by gold, according to Bloomberg. As the economy rebounded and the unemployment rate rate dropped, many investors started to anticipate a rate hike.