Gold Rising on US stimulus Hopes

Gold rose on Tuesday, January 26th, as the yellow metal’s appeal was strengthened as a hedge against inflation thanks to expectations of eventually passing a large US stimulus package, despite the strong dollar curbing the gains.

This rose in spot transactions 0.1% to 1856.33 dollars an ounce and US gold futures gain 0.1% to $ 1856.80.

Gold received more support, as the US Treasury 10-year bond yields hovered near the three-week low that it touched in the previous session, but the dollar rose 0.1% which increases the cost of gold to holders of other currencies.

The US Federal Reserve is due to begin its two-day policy meeting later today. The easing of monetary policy adds pressure on government bond yields and benefits gold that does not yield a return.

Despite expectations that the Fed will maintain its stance on monetary policy, investors will be watching its tone closely.

As for the other precious metals, silver stabilized at $ 25.30 an ounce, platinum lost 1.3% to $ 1084.10, and palladium fell 0.1% to $ 2333.02.