Daily Gold Update

Source: Bloomberg

New York— Gold rose for a second day on speculation that the Federal Reserve will spur inflation by continuing to buy Treasury securities in a bid to revive the economy. Silver also advanced. Analysts expect the Federal Reserve to keep a $300 billion program of buying Treasuries as a way to loosen credit by adding to the money supply. Fed policy makers are meeting today. Some investors buy gold as a hedge against inflation. The U.S. consumer price index has declined 2.7 percent since September, Labor Department data show.

�There�s a lot of anticipation to see whether the Fed is going to continue printing money,� Sagiv Peretz, a Finotec Trading U.K. senior dealer, said by telephone from London. �If they will do that, it might support gold because of expectations of inflation further down the road.� Gold futures for August delivery rose $10.10, or 1.1 percent, to $934.40 an ounce on the New York Mercantile Exchange�s Comex division. The most-active contract advanced 0.4 percent yesterday. See full story.