Gold eases after rally, but US stimulus hopes check losses

Reuters, (18/11) -- Gold snapped a three-day winning streak on Monday but prices continued to hold near the $1,300 level amid hopes the U.S. Federal Reserve would stick to its easy monetary policy, burnishing the metal's appeal as a hedge against inflation. Spot gold eased 0.2 percent to $1,287.55 an ounce by 0027 GMT. Prices rose nearly 2 percent in the past three sessions, underpinned by expectations that the nominee to lead the U.S. Fed, Janet Yellen, would continue the bank's $85 billion monthly bond purchases in that role. Hedge funds and other speculators pulled money out of gold for a third straight week to reduce bullish bets they had staked on U.S. commodities. The size of the reductions was the largest in such a period since March, data issued on Friday showed.