Gold Prices Stabilize on Falling Equities

Gold prices rose 0.4 percent or $5.05 to $1,261.80 per ounce on Wednesday as stock markets worldwide fell. Traders are waiting to hear news from the U.S. Federal Reserve’s meeting on whether its bond-buying stimulus program will see further cuts, which has made stock markets surrender their gains, according to Reuters.

“At the moment we’re seeing quite a bit of churn in the S&P ahead of the open – we’re now down on the day after being up earlier,” Ole Hansen, Saxo Bank’s head of research, told Reuters. “That may be what’s just lending support (to gold) at the moment.”

U.S. gold futures for February delivery rose $10.40 an ounce to $1,261.20 an ounce.