Gold, silver are up after Yellen backs off hike

Spot gold spiked to $1,334 an ounce, a two-week high, after the Federal Reserve announced there would be no rate hike in September.

The Federal Reserve, chaired by Janet Yellen, said it is maintaining the current target rate for the federal funds rate at 1/4 to 1/2 percent.

Silver also gained topping at $19.80.

In a news release the Fed said factors were pushing it to raise the rate, such as solid job gains and increased household spending. However, inflation is running below the committee's 2% percent longer-run objective and business fixed investment remains soft.

"The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," said the Federal Reserve.

"The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation."

At a press conference, Yellen was asked if the upcoming election put pressure on the Federal Reserve not to act. Donald Trump accused the Janet Yellen of keeping interest rates low due to White House pressure.

"I think Congress very wisely established the Federal Reserve as an independent agency in order to insulate monetary policy from short term political pressures," said Yellen.

"I can say emphatically that partisan politics plays no role in our decisions about our stance regarding monetary policy."

Ahead of the announcement, Lawrence Summers, former Director of the NEC for President Obama, fired off a series of tweets urging the Fed not to raise.

Creative Commons image of Janet Yellen by Day Donaldson