Investors were hoping that the Federal Reserve released a new round of quantitative easing, which will drive more cheap loans to the market which will increase the rate ofinflation, which gold is traditionally a safe haven from it and give investors a greater ability to buy the precious metal.
Spot gold rose 1.5% to 1720.33 dollars an ounce, after it came down 5% in the previous session in the largest daily loss since December 2008. Stepped up contract prices U.S. gold futures for 0.6% to 1721.60 dollars an ounce. Silver rose 0.9% to 34.91dollars per ounce after losing more than 6% in the previous session.
And platinum rose 1% to 1691.99 dollars an ounce and palladium by 0.04% to 700.97dollars an ounce.