IV:Gold futures edge higher ahead of FOMC policy decision
Investing.com - Gold futures edged higher on Wednesday, as market players looked ahead to the outcome of the Federal Reserve's highly anticipated policy statement due later in the trading session.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,331.35 a troy ounce during European morning hours, up 0.5%.
Comex gold prices rose by as much as 1.1% earlier in the session to hit a daily high of USD1,339.15 a troy ounce.
Gold futures were likely to find support at USD1,308.75 a troy ounce, the low from July 25 and resistance at USD1,347.85, the high from July 23.
Markets were looking ahead to the Fed's upcoming policy statement due later in the day on hopes the central bank could offer more clues on when it could slow the pace of its monthly bond purchases.
In addition, traders are awaiting the release of U.S. growth figures for the second quarter scheduled for later in the session for indications of how the economic recovery is progressing.
Any improvement in the U.S. economy was likely to reinforce the view that the Federal Reserve will begin to taper its bond purchase program in the coming months.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of 21% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere on the Comex, silver for September delivery rose 0.8% to trade at USD19.83 a troy ounce, while copper for September delivery rallied 1.1% to trade at USD3.075 a pound.
The red metal edged higher on hopes policy makers in China will introduce fresh easing measures to boost growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
