Gold futures were advancing on Wednesday, pushed up in value by anticipations about various central banks getting ready to boost their respective economic systems with monetary stimulus programs, Bloomberg reports.
China, host of the globe's second-largest economy was expected to release economic data on Thursday that was forecast to show inflation is slowing in the Asian nation. Chairman Ben Bernanke of the central bank of the U.S., owner of the world's largest economy, could be preparing to expound options to stimulate the economy when the body he leads convenes later this month at its yearly retreat in Wyoming.
"Gold seems to be supported by hopes that Europe and the United States would launch more stimulus measures to help shore up their faltering economies," senior analyst Pradeep Unni with Richcomm Global Services told Reuters. "Investors are betting that the festering debt crisis in the euro zone could push the ECB to launch a new round of bond-buying soon."
At 1:34 p.m. on Wednesday, gold futures advanced 0.19 percent, a $3.10 gain to $1,615.90 per troy ounce.
Central bank stimulus programs often drive up the price of gold since they pull down the value of the U.S. dollar, according to Reuters. Gold and the dollar typically perform opposite one another.