Gold jumped the most since 2009 after the Federal Reserve unexpectedly refrained from reducing the pace of monthly bond purchases, increasing demand for the metal as a store of value.

“The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Federal Open Market Committee said at the conclusion of a two-day meeting in Washington.

Earlier, spot gold touched the lowest in almost six weeks, dropping beneath $1,300 an ounce, on speculation that the central bank would start to rein in quantitative easing.

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“This is a game changer, and some of the money that ran away because of tapering fears will be back,” Michael Gayed, the chief investment strategist who helps oversee $270 million at New York-based Pension Partners LLC, said in a telephone interview. “We are seeing the bullish sentiment return.”

Gold for immediate delivery rose 4.1 percent to $1,364.67 at 4:11 p.m. New York time, heading for the biggest gain since Jan. 23, 2009. Earlier, the price fell as much as 1.4 percent to $1,292.02, the lowest since Aug. 8.

On the Comex, futures for December delivery jumped 4.2 percent to $1,364.10, the biggest gain since March 2009 in electronic trading in New York. Earlier, prices settled 0.1 percent lower at $1,307.60.

Trading on the Comex was 39 percent above the average for the past 100 days for this time of the day, according to data compiled by Bloomberg.

Through Tuesday, spot gold dropped 22 percent this year amid low U.S. inflation and an equity rally. The metal rose 70 percent from the end of December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system by purchasing debt.

“This unambiguous dovish statement from the Fed will get many to say that the Fed is going to be behind the inflation curve,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “We will see prices move close to the $1,415 level.”

Gold futures in New York came within three percentage points of entering a bull market on Aug. 27 as the threat of U.S. military action against Syria boosted demand for haven assets.

Prices that fell into a bear market in April are heading for the first annual decline in 13 years after some investors lost faith in the metal as a store of value. Holdings in exchange-traded funds backed by bullion are down 26 percent in 2013.

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