Gold ETFs vaulted to month-high levels as hope of some form of stimulus from the Federal Reserve gave investors confidence the precious metal was poised for another leg up in its 11-year rally, according to an article on ETF Daily News.

Spurred by lackluster U.S. economic data, the Fed is reportedly discussing ways to support the economy in light of the eurozone’s debt crisis, writes Christian Magoon, contributor to the article.

Gold funds like iShares Comex Gold Trust (NYSEArca: IAU) and the SPDR Gold Trust (NYSEArca: GLD) gained nearly 1.7 percent during the afternoon session. Also, all of the U.S.-listed gold-tracking ETFs are positive year-to-date, according to ETF Daily News.

However great the news may be for gold, the stimulus would devalue the dollar, and cause the PowerShare DB US Dollar Index ETF (NYSEArca: UUP) to fall, the article said. UUP is a long-dollar play against a basket of currencies.

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