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Gulf Today Report

Gold jumped on Wednesday as investors await Federal Reserve’s policy decision and further US stimulus.

Spot gold was up 0.1% at $1,854.51 per ounce by 05:37 GMT, after hitting its highest since Dec. 9 at $1,858.13. US gold futures rose 0.2% to $1,859.60.

Kyle Rodda, IG Market said: "The markets are just craving anything in terms of a US stimulus package and news that some bipartisanship emerged last night marginally lifted inflation expectations, benefiting gold." 

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The Fed’s final policy decision for the year is due tonight, investors are optimistic that interest rates will be pinned near zero.

Analysts are also hoping for new guidelines on how the timeline for the Fed’s massive bond-buying programme.

Rodda said, "the unlikely magic ingredient that would see gold prices fly would be if the Fed potentially entertains a yield curve control programme to keep risk-free rates low."

Silver rose 0.7% to $24.66 an ounce and palladium gained 0.7% to $2,335.07.