Gold Rises Boosted by a Bet on Inflation Ahead of The Fed Meeting

Gold rose on Wednesday, March 17th, hovering near its highest level in more than two weeks, amid expectations of a higher level of inflation, although trading was limited to a narrow range, with investors showing caution before the two-day policy committee meeting of the Federal Reserve.

Gold rose 0.3% in the spot market to $1736.42 an ounce, and earlier it had touched the highest level since the first of March at $1740.90.

In futures trading in the US, the yellow metal rose 0.3% to $1735.40.

The dollar won for the fourth session, supported by high US revenues thanks to expectations of a stronger economic recovery after a package to revive the economy worth $1.9 trillion signed by the US President to turn into law last week.

In terms of other precious metals, silver fell 0.2% to 25.90 an ounce, and palladium lost 0.3% to $2490.16 after hitting a year high of $2520.31 yesterday, while platinum fell 0.4% to $1207.56.