The gold price rose and the dollar fell following the latest comments from the Federal Reserve. The Fed announced they expect medium term interest rates to rise faster than expected, but lowered their long term forecast. The gold price increased 0.2% on the news to $1,279.80 per ounce whilst the dollar fell against a basket of major currencies. The pound is now trading at $1.70 a new 12 month high.

Analysts are forecasting the violence in Iraq, Ukraine and Syria will provide continued support to the gold price over the short to medium term.

The Fed also revised its 2014 U.S. growth projection from 2.3% to 2.1% raising questions about the health of the world’s largest economy.

Silver rose 0.2% to $19.90 per ounce, platinum climbed 0.6% to $, 1,452.5 per ounce and palladium increased 0.25% to $824.75 per ounce. Assets under management at the world largest gold ETF, The SPDR Trust remained unchanged.