Gold climbs as the Dollar weakens with the Feds expanding Bond Buying Program
Tuesday morning saw the price of gold in Asia, effectively offsetting a number of its losses from a session before. The reported climb recorded after the U.S. Federal Reserve moved to buy individual corporate bonds through the secondary market that had effectively increased risk appetite.
Gold futures went up by 0.51% at $1,736.05 by 12:17 AM ET (5:16 AM GMT). Stocks which is in inverse relationship with the yellow metal, were also up on Tuesday.
Gold was supported by the dollar, which went weak after the announcement of changes implemented by the Fed to its bond buying program on Monday. The program’s range of eligible assets had been effectively widened by the Central Bank to include U.S. corporate bonds that satisfies certain criteria.
On the other hand, the Bank of Japan will be announcing policy decisions once its meetings later in the day have wrapped up and. The Bank of England on Thursday will be doing the same. Gold is seen to climb again after further stimulus measures are given from whatever decision will be released. These would act as a hedge against inflation and possible currency debasement.