Investing.com - Gold prices moved higher on Wednesday as the dollar fell ahead of the release of the minutes from the Federal Reserve's June monetary policy meeting, as investors were unsure if the U.S. bank would reveal when monetary stimulus measures may end.
Gold and the dollar trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.50% at USD1,252.15 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,242.35 and down from a high of USD1,260.05 a troy ounce.
Gold futures were likely to find support at USD1,214.55 a troy ounce, Monday's low, and resistance at USD1,266.55, the high from July 2.
The Federal Reserve is due to release the minutes of its June monetary policy meeting later Wednesday, and uncertainty beforehand allowed the dollar to weaken and gold to strengthen.
While data from the U.S. labor market, manufacturing sector, housing industry and other sectors of the economy have come in better than expected recently, uncertainty as to whether the reports were strong enough to merit the Fed to taper monetary stimulus measures sooner rather than later pushed the dollar down in mid-session trading on Wednesday.
Stimulus program's such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, making gold a nice hedge in the process.
While many investors feel such tools will begin to wind down later this year, uncertainty over the exact timing gave gold room to rise on Wednesday, especially amid talk the Fed may begin to taper back stimulus policies in December instead of recent market forecasts for around September.
Elsewhere on the Comex, silver for September delivery was up 0.44% at USD19.223 a troy ounce, while copper for September delivery was up 0.91% and trading at USD3.092 a pound.
Gold and the dollar trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.50% at USD1,252.15 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,242.35 and down from a high of USD1,260.05 a troy ounce.
Gold futures were likely to find support at USD1,214.55 a troy ounce, Monday's low, and resistance at USD1,266.55, the high from July 2.
The Federal Reserve is due to release the minutes of its June monetary policy meeting later Wednesday, and uncertainty beforehand allowed the dollar to weaken and gold to strengthen.
While data from the U.S. labor market, manufacturing sector, housing industry and other sectors of the economy have come in better than expected recently, uncertainty as to whether the reports were strong enough to merit the Fed to taper monetary stimulus measures sooner rather than later pushed the dollar down in mid-session trading on Wednesday.
Stimulus program's such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, making gold a nice hedge in the process.
While many investors feel such tools will begin to wind down later this year, uncertainty over the exact timing gave gold room to rise on Wednesday, especially amid talk the Fed may begin to taper back stimulus policies in December instead of recent market forecasts for around September.
Elsewhere on the Comex, silver for September delivery was up 0.44% at USD19.223 a troy ounce, while copper for September delivery was up 0.91% and trading at USD3.092 a pound.