Investing.com - Gold prices rose on Monday after mixed U.S. data gave investors room to snap up nicely-priced positions in the commodity, but expectations for the Federal Reserve to deliver an upbeat take on the economy this week capped gains.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,234.10 a troy ounce during U.S. trading, up 0.21%, up from a session low of $1,226.40 and off a high of $1,239.00.
The December contract settled down 0.61% at $1,231.50 on Friday.
Futures were likely to find support at $1218.60 a troy ounce, the low from Jan. 8, and resistance at $1,279.20, last high from Sept. 4.
Mixed U.S. data gave gold room to rise on Monday and come off eight-month lows, though Federal Reserve expectations capped gains.
In a report, the Federal Reserve Bank of New York said that its general business conditions index increased to a five-year high of 27.5 this month from 14.7 in August. Analysts had expected the index to rise to 16.0 in September.
A separate report showed that U.S. industrial production fell 0.1% last month, disappointing forecasts for a 0.3% gain. Industrial production for July was revised down to a gain of 0.2% from a previously reported increase of 0.4%.
The Fed will announce its latest statement on monetary policy this Wednesday, and expectations for the U.S. central bank to cut its monthly bond-buying program to $15 billion from $25 billion gave the dollar some support on Monday, which watered down the yellow metal's advance.
Gold and the dollar tend to trade inversely with one another.
Investors were also hoping to see a timetable as to when U.S. interest rates may rise.
Meanwhile, silver for December delivery was up 0.11% at $18.627 a troy ounce, while copper futures for December delivery were down 0.45% at $3.093 a pound.