Is gold still a good hedge against coming US hyper-inflation? Buyers still seem to think so.
Gold prices rose on Wednesday, snapping a three-day losing streak, as hopes for a new U.S. asset-purchase program and better prospects facing Greece's debt deal boosted risk appetite. Gold followed increases in U.S. equities and crude oil after major banks and pension funds threw their weight behind Greece's bond swap offer to private creditors, making it increasingly likely that the rescue package will go through. Bullion extended gains after the Wall Street Journal said U.S. Federal Reserve officials were considering a new type of bond-buying program designed to subdue inflation worries. Despite the rise, the metal has lost 6 percent since Wednesday last week, partly due to fears that no monetary easing was imminent.