Gold reached a 27-year peak on Tuesday after the U.S. Federal reserve slashed its benchmark interest rate a larger-than-expected half a percentage point in an effort to diminish credit worries in U.S. Financial markets.

Gold futures for December delivery traded as high as $735.50 per ounce up $11.70 late Tuesday on the Comex division of the New York Mercantile Exchange.

Prices rose lat Tuesday afternoon after the Fed announcement to lower the Fed funds rate to 4.75 percent, the first cut for the rate in four years. Gold futures dropped to $723.70 per ounce at the end of floor trading.

The rate cut came as the dollar reached an all time low versus the Euro of $1.3981. As the dollar has weakened, Gold prices in the British pound, euros and yen have also risen.