Investing.com - Gold futures were little changed near a five-week low during European morning hours on Tuesday, amid expectations the Federal Reserve will start tapering its USD85-billion-a-month bond-buying program at the conclusion of its two-day policy meeting due to begin later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,319.00 a troy ounce during European morning hours, up 0.1%. The December contract ended 0.7% higher on Monday to settle at USD1,317.80 a troy ounce.
Gold prices traded in a range between USD1,306 a troy ounce, the daily low and a session high of USD1,321.40 a troy ounce.
Gold futures were likely to find short-term support at USD1,303.20 a troy ounce, Monday’s low and the weakest level since August 8 and resistance at USD1,365.70, the high from September 12.
Market analysts expect the Fed will cut monthly purchases of Treasuries by USD10 billion to USD35 billion and keep mortgage-bond buying unchanged at USD40 billion.
Gold prices were higher on Monday after former U.S. Treasury Secretary Lawrence Summers bowed out of the race to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, current Fed Vice Chairwoman Janet Yellen.
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 nearly 21% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery eased up 0.2% to trade at USD22.05 a troy ounce, while copper for December delivery advanced 0.15% to trade at USD3.227 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,319.00 a troy ounce during European morning hours, up 0.1%. The December contract ended 0.7% higher on Monday to settle at USD1,317.80 a troy ounce.
Gold prices traded in a range between USD1,306 a troy ounce, the daily low and a session high of USD1,321.40 a troy ounce.
Gold futures were likely to find short-term support at USD1,303.20 a troy ounce, Monday’s low and the weakest level since August 8 and resistance at USD1,365.70, the high from September 12.
Market analysts expect the Fed will cut monthly purchases of Treasuries by USD10 billion to USD35 billion and keep mortgage-bond buying unchanged at USD40 billion.
Gold prices were higher on Monday after former U.S. Treasury Secretary Lawrence Summers bowed out of the race to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, current Fed Vice Chairwoman Janet Yellen.
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 nearly 21% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery eased up 0.2% to trade at USD22.05 a troy ounce, while copper for December delivery advanced 0.15% to trade at USD3.227 a pound.