Gold has rallied over $100 in the past two days alone

Sparked by fears over a global economic slowdown, the gold price reached a new all-time high of $1,780 per ounce early Tuesday morning. The price of gold has rallied over $100 in the past two days alone as investors poured funds into the yellow metal and liquidated cyclically-sensitive stocks and commodities.

However, in early afternoon trading the gold price surrendered a significant portion of its gains, sliding back down to $1,725 per ounce. Weakness in the gold price coincided with a rebound in the broader equity and commodities markets as risk aversion subsided.

The broader U.S. equity markets staged a remarkable rally Tuesday afternoon following the Fed’s statement, as the Dow Jones Industrial Average (DJIA) surged higher to close up 429.92 points, or 4.0%, at 11,239.77.

The Dow initially fell by nearly 200 points after the release of the FOMC announcement, but quickly rebounded as very oversold conditions lead to short-covering and bargain hunting by traders.

With its 4.0% rally, the Dow posted its largest single-day gain in over two years.