Gold futures strengthened in after-hours trading Tuesday, even after climbing above $410 an ounce in the regular session to close at their highest level in three weeks.
Metals mining shares closed near the session's highs, pulling key indexes for the sector to their highest levels since April.
Gold prices and metals shares continued their rally after the Federal Reserve raised its federal funds rate by a quarter-percentage point, as expected, to 1.75 percent. See full story.
The Fed is "suggesting a willingness, but a reluctance to raise rates," said Ned Schmidt, editor of investment publication Value View Gold Report. That gives a "green light to the euro to rise," and the dollar to weaken, he said.
"Metals market players are aware that the Fed will try to avoid raising rates for a while," and that is what has been pushing the gold market higher, he added.
But, Schmidt warned, gold is overbought, so "gold investors should step aside and not buy into this excessive strength."
The Fed decision came less than an hour after New York trading for gold futures closed. Gold for December delivery ended the day at $410.10 on the New York Mercantile Exchange, up $3.10. The contract hadn't closed at a level that high since Sept. 1.
In the after-hours session shortly after the Fed move, December gold climbed as much as $1.70 to a high of $411.80 an ounce.
But "it's still too early to tell if gold can continue to move higher," said Dale Doelling, chief market commentator at Bullion.com, adding that traders need to watch both gold and euro very closely.
"Things should become a lot clearer [Wednesday] when the dust settles," he added.
Elsewhere in the metals market Tuesday, December silver rose 9.3 cents to close at $6.373 an ounce in the regular session, but December copper ended the session at $1.3415 a pound, up 2.2 cents. The October platinum contract tacked on $10.10 to close at $852 an ounce, while December palladium closed at $210.55 an ounce, up $2.30.
Tracking inventories, copper supplies were down 525 short tons at 53,615 short tons as of late Monday, according to Nymex. Silver stocks were unchanged at 109.9 million troy ounces, while gold inventories stood at 4.94 million troy ounces, up 51,231 from the previous session.