FEDERAL RESERVE

Asian stocks drifted slightly lower Wednesday and the euro clawed back lost ground as investors waited for the end of a Federal Reserve policy meeting that may act to stimulate the U.S. economy.

The Federal Reserve opened a two-day meeting on Tuesday that is expected to end with a decision to stock up on longer-term Treasury notes in a bid to boost a fading economic recovery.

Gold prices rose over the $1,800 mark Tuesday on expectations that the Federal Reserve will decide this week on further steps to stimulate the economy and fresh evidence that the economy needs some stimulation.

Toronto's main stock index rebounded on Tuesday, after touching a one-week low in the previous session, as bargain-hunters returned to the market and gold miners rose along with bullion prices.

The U.S. Federal Reserve opened a two-day meeting on Tuesday that is expected to end with a decision to stock up on longer-term Treasury notes in a bid to boost a fading economic recovery.

Standard & Poor's cut Italy's credit rating on Tuesday in a surprise move that increased strains on the debt-stressed euro zone and raised pressure on policymakers to take more decisive action to resolve the crisis.

Gold rose on Tuesday, after Standard and Poor's downgraded Italy's credit rating, adding to the strain on the debt-distressed euro zone, while uncertainty over the outcome of a key U.S. Federal Reserve meeting also helped buoy the market.

Gold held steady on Tuesday, after Standard and Poor's downgrade of Italy's credit rating, while a stronger dollar weighed on sentiment ahead of a key U.S. Federal Reserve policy meeting.

As Europe's debt crisis deepens, low-yielding U.S. government debt and the much maligned dollar are suddenly glowing more brightly than gold.

Standard & Poor's cut its unsolicited ratings on Italy by one notch on Tuesday, a surprise move that sharply increases strains on the debt-stressed euro zone and piles pressure on policymakers to take more decisive action to resolve the crisis.

Gold lost its appeal as a safe haven on Monday, falling over 2 percent as fears of a Greek debt default and larger euro zone problems drove investors into bonds and the dollar.

As the U.S. economy slouches toward another recession and confidence in policymakers erodes, investors are coming to grips with the notion that the country may already be several years into a Japan-style lost decade.

Gold prices rallied on Monday after European policy makers failed to soothe fears of Greek default and contagion to other euro zone countries, prompting investors to seek refuge in the precious metal.

Wall Street hopes for more Fed action and clear signs European leaders will follow through on their new urgency to tackle the euro zone debt crisis if U.S. stocks are to build on their best week since early July.

Rep. Ron Paul won the California straw poll on Saturday, receiving almost half of all the votes.

Gold rallied 1 percent on Friday in volatile trade, as the safe-haven bid for precious metals returned when a survey showed U.S. consumers gloomy about the economic outlook.

Former President Jimmy Carter appeared on MSNBC Thursday night and endorsed candidate Mitt Romney for the Republican Party's presidential nomination. Could the endorsement doom Romney's nomination chances?

At a meeting with E.U. finance ministers, U.S. Treasury Secretary Timothy Geithner made the case for a leveraged E.U. buyout fund ala the U.S.'s successful 2008 TALF, to help address Europe’s banking crisis, but the structure and size of any beefed-up intervention mechanism remained undetermined as of Friday night in Europe.

Gold prices rebounded Friday, along with other safe-haven investments, literally hours after dropping sharply on word that the world's biggest central bankers were jointly moving to protect the eurozone's commercial financial institutions.

Stock futures pointed to a weaker open for equities on Wall Street on Friday after strong gains in the previous session, with futures for the S&P 500, for the Dow Jones and for the Nasdaq 100 down 0.4-0.7 percent.

World shares rose half a percent to one-week highs on Friday while the euro clung to gains from the previous session on hopes that European policymakers would finally come up with a bold plan to combat a deepening debt crisis.