Investing.com - Gold and silver prices edged lower in rangebound trade on Monday, as market players prepared for this week’s Federal Reserve meeting and possible news on the fate of the central bank’s bond-buying program.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,232.10 a troy ounce during European morning trade, down 0.2%. Comex gold prices held in a tight range between USD1,231.40 a troy ounce and USD1,237.90 a troy ounce.
Gold futures were likely to find support at USD1,219.50 a troy ounce, the low from December 13 and resistance at USD1,256.50, the high from December 12.
The February contract settled 0.79% higher on Friday to end at USD1,234.60 a troy ounce as investors returned to the market to seek cheap valuations in wake of recent losses.
Meanwhile, silver for March delivery shed 0.2% to trade at USD19.56 a troy ounce. Comex silver prices held in a range between USD19.52 a troy ounce and USD19.67 a troy ounce.
Precious metal traders were turning their attention to the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the central bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Recent signs of improvement in the labor market and last week’s agreement on a two-year U.S. budget deal were seen as removing obstacles to the winding back of monetary stimulus.
Gold is down approximately 26% this year, while silver has lost nearly 35%, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, copper futures for March delivery inched up 0.25% to trade at USD3.320 a pound.
Copper traders shrugged off disappointing manufacturing data out of top consumer China.
Data on Monday showed that the preliminary reading of China’s HSBC manufacturing index ticked down to a three month low of 50.5 in December from a final reading of 50.8 in November.
Economists had expected the index to rise to 51.0.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,232.10 a troy ounce during European morning trade, down 0.2%. Comex gold prices held in a tight range between USD1,231.40 a troy ounce and USD1,237.90 a troy ounce.
Gold futures were likely to find support at USD1,219.50 a troy ounce, the low from December 13 and resistance at USD1,256.50, the high from December 12.
The February contract settled 0.79% higher on Friday to end at USD1,234.60 a troy ounce as investors returned to the market to seek cheap valuations in wake of recent losses.
Meanwhile, silver for March delivery shed 0.2% to trade at USD19.56 a troy ounce. Comex silver prices held in a range between USD19.52 a troy ounce and USD19.67 a troy ounce.
Precious metal traders were turning their attention to the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the central bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Recent signs of improvement in the labor market and last week’s agreement on a two-year U.S. budget deal were seen as removing obstacles to the winding back of monetary stimulus.
Gold is down approximately 26% this year, while silver has lost nearly 35%, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, copper futures for March delivery inched up 0.25% to trade at USD3.320 a pound.
Copper traders shrugged off disappointing manufacturing data out of top consumer China.
Data on Monday showed that the preliminary reading of China’s HSBC manufacturing index ticked down to a three month low of 50.5 in December from a final reading of 50.8 in November.
Economists had expected the index to rise to 51.0.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.