Forexpros - Gold futures edged higher on Wednesday, but gains were limited as comments by Federal Reserve Chairman Ben Bernanke on the U.S. fiscal cliff and hopes for a ceasefire between Gaza and Israel kept the precious metal inside its recent trading range.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,726.45 a troy ounce during European morning trade, easing up 0.17%.
Gold prices were likely to find support at USD1,704.55 a troy ounce, the low from November 15 and near-term resistance at USD1,737.95, the high from November 12.
Federal Reserve Chairman Ben Bernanke said Tuesday the central bank does not have the tools to offset damage caused by the looming fiscal cliff, approximately USD600 billion in tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
Market sentiment also remained weak as investors eyed ceasefire negotiations between Israel and Hamas.
Meanwhile, talks between euro zone finance ministers and the International Monetary Fund concluded on Tuesday without reaching a deal on unlocking Greece’s bailout package, amid disagreements on how best to reduce the country’s debt to sustainable levels.
The head of the eurogroup of finance ministers Jean-Claude Juncker said a deal was close he didn’t know when Athens would receive its next aid installment. The talks are set to continue next Monday.
Elsewhere on the Comex, silver for December delivery was up 0.34% to trade at USD33.04 a troy ounce, while copper for December delivery was down 0.26% to trade at USD3.507 a pound.
