Conjecture about additional intervention by central banks prompting demand pushed gold futures to their highest value in more than seven months on Wednesday, according to Bloomberg.
The Bank of Japan on Wednesday indicated it will enhance an asset-buying fund by the equivalent of $127 billion in yen, which follows the U.S. Federal Reserve indicating late last week that it plans to implement a third round of quantitative easing. The European Central Bank noted earlier this month that it plans to purchase debt of other countries. China also approved sizable infrastructure projects, efforts to spur its economy.
"Gold likes the announcement out of Japan," trader Frank Lesh with FuturePath Trading in Chicago told the news source. "People are concerned that this wave of global easing will stoke inflation."
At 11:08 a.m. on Wednesday, gold futures gained 0.12 percent, a $2.20 lift to $1,773.40 per troy ounce.
Reuters reports gold's climb on Wednesday was a direct result of the Japanese central bank announcement. But as the trading session continued, the precious metal tracked the downward dip of oil and also endured pressure of the strengthening U.S. dollar.
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