Gold prices rose in Asia earlier on Wednesday, continuing its gains from the previous session.
Gold futures gained 0.22% to $1,726 per ounce at 12:16 OM ET (5:16 AM GMT). The yellow metal previously rose by 0.10% in the previous session.
The gains come as an anticipated Federal Reserve policy meeting bolstered investors’ risk appetite. The Fed meeting is scheduled to take place later in the day. The increase in confidence is also attributed to a rise in Asian stocks and a fall in the Dollar.
Gold and stocks are often observed to move in opposite directions.
Investors await clarity on whether the Fed meeting would lead to near-zero interest rates or if it would introduce further measures to soften the economic impact to the COVID-19 pandemic. An ECB meeting is also scheduled to take place on Thursday.
Gold prices will likely benefit from fiscal stimulus around the world as it acts as a hedge against inflation and currency debasement.
Meanwhile, the Bank of Nova Scotia announced on Tuesday that it would be closing its metals business.