IV:Gold futures trade near 1-week low with Fed policy in focus
Investing.com - Gold futures held near the previous session’s one-week low on Tuesday, as investors awaited further indications over the direction of U.S. monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,274.30 a troy ounce during European morning trade, up 0.15%.
Comex gold prices traded in a range between USD1,270.20 a troy ounce, the daily low and a session high of USD1,276.00 a troy ounce.
The December contract dropped to USD1,269.20 a troy ounce on Monday, the lowest since November 13, before ending the session down 1.17% at USD1,272.30.
Gold futures were likely to find support at USD1,260.70 a troy ounce, the low from November 12 and resistance at USD1,293.60, the high from November 14.
Investors are turning their attention to the minutes of the Federal Reserve’s October meeting, as well as a speech by Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
New York Fed President William Dudley said Monday he was growing more hopeful that the economy is improving, and added that the fiscal uncertainties that acted as a drag on growth are likely to abate in the coming months.
However, he also added that stimulus would remain in place for a considerable amount of time.
Dovish comments by Fed Chairwoman nominee Janet Yellen last week were seen as supporting the view that the central bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
Gold prices are down approximately 24% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its monthly bond purchasing program.
Elsewhere on the Comex, silver for December delivery shed 0.15% to trade at USD20.33 a troy ounce, while copper for December delivery inched down 0.3% to trade at USD3.140 a pound.
