The US Federal Reserve on Wednesday pledged to hold interest rates at levels near zero until late 2014. The surprising announcement sent gold soaring in afternoon trade and the yellow metal scaled the $1,700 an ounce level for the first time since December 9 last year as investors – worried about cheap money flooding markets – turn to gold as a storer of wealth.

Detour Gold added $1.80 to $28.40 or 6.7% on Wednesday after announcing bought deal financing led by BMO Capital Markets and CIBC worth $241 million. The latest round is enough to complete its $1.45 billion Ontario project for which it also announced improved reserves estimates.

Aurizon Mines (TSE:ARZ) jumped more than 10% on Wednesday despite the absence of fresh news. The cash-rich Quebec miner earlier this month announced a record year for gold production and strong growth prospects and 2012 is expected to be a busy year for gold M&A activity.

Allied Nevada Gold hit its 2011 production target despite operational delays, and is expecting to double output in 2012.

Kinross Gold was taking more punishment on Wednesday morning after its stock was downgraded and US securities litigation firm Holzer Holzer & Fistel announced it is investigating potential violations of federal securities laws by the miner over gold grades at its Tasiast property. Then at 13:30 the stock popped into positive territory after a single trade worth $72 million went through.

Labour negotiations between BHP Billiton and unions representing coal workers are at an impasse and could disrupt coal operations across Eastern Australia.

New World Resource Corp. ("New World" or the "Company") (TSX VENTURE:NW)(FRANKFURT:NWU) wishes to announce that it has entered into a letter of intent with Li3 Energy, Inc. (OTCBB:LIEG) ("Li3") relating to the sale of New World's lithium assets to Li3.

As negotiations on Greek debt continue, investors are watching what happens to physical demand for gold as Chinese retail buying slows

In his 2012 State of the Union Address, President Barak Obama called for the end of federal oil subsidies and a doubling of clean energy grants.