Gold futures were on the rise on Tuesday as policy makers with the central bank of the U.S. kicked off two days of meetings that command attention as investors and traders mine for indications about additional monetary easing, Reuters reports.
Bullion's climb on Tuesday, as the Federal Open Market Committee convened, followed the upward tack of the common currency of the European Union, which benefited from Greek efforts to create a government and acquire its bailout aid. With a Spanish bond auction planned for Thursday, borrowing costs increased but bond yields slipped.
"Ahead of the FOMC meeting, gold bugs will watch for signs of more quantitative easing or an extension of Operation Twist when it ends this month," analyst Lynette Tan with Phillip Futures in Singapore told Bloomberg. "A failure to confirm more asset purchase or the like could see gold dropping again. For the moment, we expect policy decisions from the Fed to influence gold price more than risk appetite linked to the euro crisis."
At 9:34 a.m. on Tuesday, gold futures climbed 0.09 percent, a $1.50 gain to $1,628.50 per troy ounce.
The yellowish metal has climbed for eight consecutive trading sessions, the lengthiest bullish trend since last July, Bloomberg reports.
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