Daily Gold Update

Source: Marketwatch

New York— Gold futures ended on a slight gain Wednesday as investors cheered the Federal Reserve's prior-session pledge to maintain U.S. interest rates at exceptionally low levels and as 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 ended up $1.70, or 0.2%, at $1,124.20 an ounce at the New York Mercantile Exchange. The SPRD Gold Trust, the largest exchange-traded fund backed by gold, however, fell 0.7%. Holdings in the trust remained for the fourth session at 1,115.51 metric tons.

The precious metal rose even as the dollar posted slight gains earlier on before eventually slipping into negative territory. The dollar index, which measures the U.S. unit against a basket of six major currencies, recently traded around the flat line. A lower dollar tends to lift gold, making it cheaper for holders of other currencies and more attractive as a hedge against weaker currencies. See full story.