Commodity Online

TOKYO: Gold s plunge in the US did not affect its futures in Asia as it gained along with silver on Wednesday.

Gold for immediate delivery, which dropped 2 percent on Tuesday, rose as much as 0.6 percent to $988.55 an ounce, which is 4.3 percent below the all time high $1,032.70 set March 17.

Gold traded at $987.66 at 10:55 a.m. in Tokyo. Silver for immediate delivery gained 0.3 percent to $19.78 an ounce.

The Fed cut its main lending rate by three quarters of a percentage point to 2.25 percent as officials try to prop up the faltering economy and restore faith in the U.S. financial system. The reduction was smaller than traders anticipated, signaling concern about inflation.

Gold for February delivery on the Tokyo Commodity Exchange gained 0.9 percent, to $996 an ounce at the end of morning trading.