Daily Gold Update

Source: Marketwatch

New York— Gold headed higher in electronic trading Tuesday after the Federal Reserve expressed fears of deflation and indicated it would consider more action to boost the economy. Prices on Globex most recently added $7.60 to $1,283.30 an ounce. Bullion traded around $1,273 an ounce on Globex before the Fed announcement. Gold for December delivery fell $6.50, or 0.5%, to $1,274.30 an ounce on the Comex division of the New York Mercantile Exchange in the regular trading session. That was gold�s first down day in four.

Gold on Monday hit a fresh record, settling at $1,280.80 an ounce. After the trading closed, the Fed signalled it would be willing to take additional steps to boost faltering U.S. economic recovery. In its run to new highs, the precious metal has benefited from expectations that the central bank will resume its asset purchases, something that would pressure the dollar while boosting gold�s appeal as an alternative to currencies. See full story.