Gold futures bounced on demand as a reaction to the Federal Reserve's announcement that the U.S. economy's recovery is not as fast as earlier expected.

The "pace of economic recovery is likely to be more modest in the near term than had been anticipated," the Federal Open Market Committee said in a statement.

Considered a safe haven during an economic downturn, gold futures for December delivery climbed $9.40, or 0.8 percent, to $1,207.40 an ounce at 9:58 a.m. on the Comex in New York. The metal reached a record $1,266.50 on June 21.

Futures also climbed as the Fed said it would buy more U.S. government debt, reversing plans to exit from aggressive monetary stimulus.

An investment analyst at Phillip Futures Pte in Singapore said in a Bloomberg report that gold is well supported by long-term inflationary concerns after the shift in policy by the Federal Reserve.

Silver futures for September delivery declined 4.8 cents, or 0.3 percent, to $18.11 an ounce.

Platinum futures for October delivery rose $1.20 to $1,538.20 an ounce on the New York Mercantile Exchange.

Palladium futures for September gained $1.50, or 0.3 percent, to $472.10 an ounce.