Gold rises as investors bet on dovish U.S. Fed stance

Gold last traded at $1,944 an ounce. Silver at $26.92 an ounce.

NEWS SUMMARY: Precious metal prices eased back Thursday on mild profit-taking and a firmer dollar. U.S. stocks dropped as the technology sector declined amid conflicting reports of a coronavirus vaccine timeline.

Reuters/Yaoo Finance---"Gold prices rose on Wednesday, helped by a subdued dollar as investors bet on dovish monetary cues from the U.S Federal Reserve when it announces its policy decision later today. 'What we're probably seeing building in gold here is the expectation that the Fed is going to be more dovish than in the past, and the realization that we're seeing slightly more inflationary pressure than anticipated,' said OANDA analyst Craig Erlam. While the Fed does not need to announce stimulus measures now, it will have to lay the groundwork for potential stimulus later, he added. Making bullion more attractive for those buying the metal in other currencies, the dollar index fell in the run-up to the Fed decision....Lower U.S. interest rates tend to weigh on bond yields and the dollar, bolstering the appeal of non-yielding gold, which is also seen as hedge against inflation and currency debasement."