The edgy U.S. dollar helped push up gold futures on Tuesday as the policy-making body with the U.S. Federal Reserve began two days of meetings, according to Bloomberg.
After dropping to its lowest value since early August on Monday, the yellowish metal was on the rise on Tuesday, albeit moderately. Reuters reports the Fed meetings come at an interesting point. Former U.S. Treasury Secretary Lawrence Summers pulled out of the race to be the next chief while Vice Chair Janet Yellen emerged as a favorite.
"You have a firmer euro against the dollar," owner Peter Fertig with Quantitative Commodity Research Ltd. in Hainburg, Germany told Bloomberg on Tuesday. "The market perceived Summers as being hawkish. It increases the chances for Yellen, and that's regarded as a continuation of monetary easing. That is of course good for gold."
At 9:36 a.m. on Tuesday, gold futures edged up 0.12 percent, a $1.62 rise to $1,314.41 per troy ounce.
Thus far this year, bullion has dropped more than 20 percent, according to Reuters, largely because of the strength of the economic recovery in the U.S.
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