Investing.com - Gold futures rallied on Tuesday, as market players awaited updates from a meeting between Russian President Vladimir Putin and Ukrainian counterpart Petro Poroshenko later in the day.
On the Comex division of the New York Mercantile Exchange, gold for December delivery rose 0.99%, or $12.60, to trade at $1,291.50 a troy ounce during European morning hours. Futures traded in a range between $1,276.20 and $1,291.70 an ounce.
A day earlier, gold prices shed 0.1%, or $1.30, to settle at $1,278.90. Futures hit a nine-week low of $1,273.40 on August 21 as market players priced in a greater risk of a sooner-than-expected hike in U.S. interest rates.
Futures were likely to find support at $1,273.40, the low from August 21 and resistance at $1,299.30, the high from August 20.
Russian President Vladimir Putin will meet his Ukrainian counterpart Petro Poroshenko for the first time in months in Belarus's capital of Minsk later Tuesday, in hopes of reaching a ceasefire or a political solution to the four-month old conflict in eastern Ukraine.
Market players looked ahead to the release of key U.S. data later in the session for further indications on the strength of the economy and the possible future path of monetary policy.
The U.S. was to publish reports on July durable goods orders, as well as house price inflation and consumer confidence.
Data released Monday showed that new home sales dropped by 2.4% to hit a four-month low of 412,000 units last month, compared to expectations for an increase of 5.7% to 430,000.
Federal Reserve Chair Janet Yellen said at Jackson Hole on Friday that the U.S. economy is recovering and added the labor market is improving as well.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased from the previous session's 11-month high.
Also on the Comex, silver for December delivery advanced 0.78%, or 15.2 cents, to trade at $19.58 a troy ounce.
Elsewhere in metals trading, copper for December delivery shed 0.42%, or 1.3 cents, to trade at $3.224 a pound.