Gold Rises Further Following Fed, PPI

Source:

"World markets have been boosted by the Federal Reserve and Bank of Japan's soothing words. . ."

Gold futures got nudged higher Wednesday as investors continued to cheer the Federal Reserve's latest pledge to maintain U.S. interest rates at exceptionally low levels "for an extended period," and the Bank of Japan doubled the scale of its lending programs.

"World markets have been boosted by the Federal Reserve and Bank of Japan's soothing words and policies continuing. . .cheap money policies," said Mark O'Byrne, analyst at GoldCore in emailed comments.

Gold for April delivery was up $2, or 0.1%, at $1,123.80 an ounce in electronic trading.

The precious metal rose even as the dollar came off lows. The Dollar index (DXY), which measures the U.S. unit against a basket of six major currencies, recently gained 0.1%.

Keeping a lid on the dollar, U.S. wholesale inflation fell a bigger-than-expected 0.6% in February.

Also lifting the precious metal, crude-oil futures rose well above $82 a barrel as the OPEC cartel, meeting in Vienna, kept its production quota unchanged.

On Tuesday, gold gained 1.5% as the Fed's decision and as Standard & Poor's affirmed Greece's sovereign rating pressured the dollar.

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