Big gains for precious metals

Prices log their second-highest close for the month of September

Bullion prices ended substantially higher on Friday, 18 September 2015 at Comex. Gold futures on Friday logged their second-highest close for the month of September, as prices rallied on the back of the Federal Reserve's decision to keep interest rates at historically low levels.

Gold for December delivery jumped $20.80, or 1.9%, to settle at $1,137.80 an ounce on Comex. That was the highest settlement since 1 September 2015.

December silver also gained 17.9 cents, or 1.2%, to $15.163 an ounce.

For the week, gold saw a 3.1% gain, while silver was up about 4.5%.

During the week, Fed Chair Janet Yellen said, during her press conference following the central bank's monetary policy meeting, that the majority of the committee still sees higher interest rates later in the year. According to the central bank's projections, the committee's average for the Federal-funds rate by the end of 2015 is at 0.40%. Yellen added that there was an argument to be made for raising rates in September; however, because of the global weakness and fragile financial market, the committee decided to err on the side of caution and leave rates unchanged.

Higher interest rates would have hurt gold because it doesn't pay interest, making it a less attractive investment. Plus, higher rates lift the dollar and a stronger greenback can weigh on dollar-denominated commodities as they become pricier for holders of other currencies.

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