Gold futures little changed near 2-week high ahead of Fed minutes

Investing.com - Gold prices were little changed near the $1,200-level during European morning trade on Wednesday, as investors looked ahead to the minutes of the Federal Reserve’s October meeting, due out later in the day, for any clues on the possible timing of an interest rate increase.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery tacked on $1.70, or 0.14%, to trade at $1,198.80 a troy ounce during early trade in London.

Futures were likely to find support at $1,146.00, the low from November 14, and resistance at $1,216.50, the high from October 30.

A day earlier, gold prices hit $1,204.10 an ounce, the most since October 30, before settling at $1,197.10, up $13.60, or 1.15%, as an improving technical outlook and a weaker U.S. dollar lured investors back to the market.

Gold prices have been well-supported in recent days as investors returned to the market amid bullish chart signals. Prices are up nearly 6% since hitting a four-and-a-half-year low of $1,130.40 on November 7.

Later in the day, the Fed will release the minutes of its October policy meeting, at which it ended its bond-buying program in a widely expected decision.

Despite recent gains, gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Fed to start raising interest rates sooner and faster than previously thought.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Also on the Comex, silver futures for December delivery picked up 3.1 cents, or 0.19%, to trade at $16.20 a troy ounce.

Elsewhere in metals trading, copper for December delivery declined 0.3 cents, or 0.11%, to trade at $2.999 a pound, as ongoing concerns over the health of China's economy dampened appetite for the red metal.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.