New York, NY, United States (AHN) – Gold prices rallied for a third straight day, spurred higher by a weak U.S. dollar and the Fed’s comments on interest rates made earlier in the week.

In mid-afternoon trading on Friday, the most actively traded gold contract, for February delivery, gained $10.50 to $1734.40 a troy ounce on the Comex division of the New York Mercantile Exchange.

Giving gold prices a boost were comments from Fed officials on Wednesday in which they said in a statement they expected short-term interest rates to remain near zero until late 2014, citing a slow recovery in the labor market, high unemployment, the ailing housing market and moderating inflation.

Over the past three days, gold futures have gained more than $70 a troy ounce. Gold bugs have embraced, and taken comfort in, the forecast from the Federal Reserve.

The record low, near zero rate outlook for U.S. interest rates cut the so-called “opportunity cost” of holding gold. Over the past several days, market participants have opted to hold gold over low-yielding U.S. Treasuries. The worry of missing out on paltry interest payments has been replaced by the anticipated gains in value from the yellow metal.

A weaker dollar also stoked demand for the precious metal among buyers who purchase gold in foreign currencies. Gold, priced in U.S. dollars, appears cheaper to foreign buyers who purchase the metal in their own home currency.

Silver, poor man’s gold, has been rising in concert. The gray metal was up 17 cents in afternoon trading Friday, last quoted at $33.82.

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