Investing.com - Gold futures traded above the $1,200-level during European morning hours on Tuesday, as investors looked ahead to Wednesday’s Federal Reserve meeting minutes for further indications on the future possible direction of U.S. monetary policy.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,207.00 a troy ounce, down 30 cents, or 0.02%.
A day earlier, gold fell to a session low of $1,183.30, a level not seen since December 31, before turning higher to settle at $1,207.30, up $14.40, or 1.21%.
Futures were likely to find support at $1,183.30, the low from October 6, and resistance at $1,215.70, the high from October 3.
Also on the Comex, silver for December delivery tacked on 25.3 cents, or 1.47%, to trade at $17.47 a troy ounce. Prices fell to a four-year low of $16.64 on October 3.
Market players were cautious ahead of the release of minutes from the Fed's September meeting on Wednesday, after upbeat U.S. employment data last week underlined optimism over the strength of the economy and fuelled expectations that the central bank will begin to raise 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.
Elsewhere in metals trading, copper for December delivery inched up 0.1 cents, or 0.03%, to trade at $3.037 a pound. Prices hit a six-month low of $2.985 on October 2.
In the euro zone, data on Tuesday showed that industrial output in Germany dropped by a larger than forecast 4.0% from a month earlier in August, the largest decline since early 2009.
The weak data fuelled fears that the euro area economy is weakening. Europe as a region is third in global demand for the industrial metal.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.