Gold extends gains

Gold extended gains on Wednesday as global equity markets eased after a recent rally, while U.S.

Treasury yields dropped ahead of the outcome of the Federal Reserve’s meeting that is expected to shed light on the state of the economy and further stimulus.

Spot gold was up 0.1% at $1,715.43 per ounce, as of 0248 GMT, after posting its best day in a month on Tuesday. U.S. gold futures also edged up 0.1% to $1,723.60.

“We are seeing a fairly clear risk-off sort of dynamic in the markets and I think that’s been supportive for gold as yields have fallen against that narrative over the past 24 hours,” said DailyFx currency strategist Ilya Spivak.

Asian equities slipped after most U.S. stocks pared gains made during their recent rally, which also pushed U.S. Treasury yields lower.

Lower interest rates and widespread stimulus tend to boost demand for bullion, which is often seen as a hedge against inflation and currency debasement.

In other metals, silver gained 0.6% to $17.69 an ounce, palladium climbed 1.2% to $1,964.20, and platinum edged 0.1% higher to $838.22.

Via Reuters