Gold Rises to One-Week High as Fed Expands Asset Buying
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Gold futures rose to a one-week high after the Federal Reserve said it will buy $45 billion a month of Treasury securities starting in January, expanding its asset-purchase program to bolster the U.S. economy.
Borrowing costs will stay low “at least as long” as the unemployment rate remains above 6.5 percent and if inflation “between one and two years ahead” is projected to be no more than 2.5 percent, the Federal Open Market Committee said today at the conclusion of a two-day meeting. The dollar dropped for the third straight day against a basket of major currencies, boosting the appeal of gold as an alternative asset.