How the Fed's inflation policy shift impacts the gold rally

Gold last traded at $1,967 an ounce. Silver at $28.20 an ounce.

NEWS SUMMARY: Precious metal prices rose Monday on safe haven buying and a continued weakening of the U.S. dollar. U.S. stocks traded mixed with the major stock indexes ending the month with strong gains supported by ongoing accommodative Fed policies.

CNBC---"Gold is looking even better after the Federal Reserve decided to tolerate higher inflation. The precious metal rallied more than 2% on Friday morning in the aftermath of the historic announcement Thursday by Fed Chair Jerome Powell that the central bank's inflation target could exceed 2% to offset stretches of weaker inflation. The previous target has been an average of 2% over time. The change implies the central bank could keep interest rates lower for longer. Delano Saporu, founder of New Street Advisors, says support for money markets from the Fed should keep investors interested in gold. 'You still have money supply increasing,' Saporu told CNBC's 'Trading Nation' on Thursday. 'Safe haven investors are looking for another way to unlock value. With rates being as low as they are, you're going to see some of them turn to gold to put that money to work.'"