Gold futures rose above $900 an ounce Tuesday on speculation that the $800 billion-plus U.S. stimulus plan may boost inflation, increasing the metal's appeal as a hedge against rising prices. Also helping gold move up, the U.S. dollar fell against a basket of other major currencies, raising dollar-denominated gold prices. Meanwhile, holdings in the largest exchange-traded fund backed by gold hit a new record Monday. Gold for February delivery was last up $15.40, or 1.7%, at $907.80 an ounce on the Comex division of the New York Mercantile Exchange. It fell 2.4% to close at $892.40 in the previous session. Gold has been swinging around the $900 mark in the past two weeks, as investors debated the consequences of economic stimulus plans adopted by major economies in the world. While some believe the plans can boost the economy, others think they raise the risk of inflation in the long term. "Even more pertinent is the real risk that while it may be another short term panacea, it will likely lead to significant inflation or stagflation in the coming months," said Mark O'Byrne, executive director at Gold and Silver Investment. Investors buy gold as a hedge against inflation. Some also buy the metal as a safe-haven amid economic troubles. Gold's "near-term outlook will be dependent on today's U.S. stimulus package and bailout plans," said analysts at Action Economics. "Any uncertainty will boost gold's safe haven appeal, which has been a feature of trading over the last few weeks." The Senate is expected to pass the $838 billion stimulus package Tuesday. President Barack Obama Monday night pressed his case for the package. At a White House press conference, Obama said only the government can now break the "vicious cycle" in which the economy is stuck and that tax cuts alone won't fix all of the country's problems. See full story. Investors were also awaiting Federal Reserve Chairman Ben Bernanke to speak at 1 p.m. Eastern in front of the House Financial Services Committee on efforts to restore liquidity. Meanwhile, the Treasury Department is unveiling a new bank bailout plan Tuesday, which is set to create incentives for private sector investment into troubled banks. However, regulatory observers worry that those incentives may not be strong enough to bring in the hedge funds, private equity companies and other investors Treasury Secretary Timothy Geithner hopes to bring to the table. See related story. SPDR hits new record Holdings of SPDR Gold Trust , the largest exchange-traded fund oriented toward gold, hit a new record high of 881.87 tons as of Monday, up 1.7% from a day ago, according to the latest data from the fund. The total was more than 90 tons, or 12%, higher than that reported a month earlier. The SPDR Gold Trust rose 1.4% to $89.57. In currencies trading Tuesday, the dollar index fell 0.3% to 85.168. Other metals were mixed Tuesday. March copper slid 0.9% to $1.599 a pound, while March silver rose 2.8% to $13.195 an ounce. March palladium gained 4.9% to $215.90 an ounce, and the April contract for sister metal platinum added 4.5% to $1,041.30 an ounce. In other equities, shares of Barrick Gold Corp. , the world's largest gold mining company, gained 2.4% to $38.73, while Goldcorp Inc. rose 3.3% to $30.62, and South Africa's Gold Fields Ltd. added 2.3% to $10.70. The Amex Gold Bugs Index , which tracks the share prices of major gold companies, rose 2.5% to 306.48. The iShares Gold Trust ETF edged up 1.5% to $89.70, while the iShares Silver Trust ETF gained 2.1% to $12.99. The Market Vectors-Gold Miners ETF gained 2.2% to $35.14.

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