Investing.com - Gold prices slid on Tuesday amid ongoing uncertainty over the fate of the Federal Reserve's USD85 billion in monthly bond purchases, which weaken the dollar to spur recovery, making gold an attractive hedge while such ultra-loose monetary policies remain in effect.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,314.50 during U.S. afternoon hours, down 0.94%.
Gold prices hit a session low of USD1,306.20 a troy ounce and high of USD1,329.40 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, Wednesday's low, and resistance at USD1,331.80, Monday's high.
The December contract settled down 0.41% at USD1,327.00 a troy ounce on Monday.
Gold prices soared last week after the Fed made no changes to its USD85 billion bond-buying program.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more.
Conflicting statements from Federal Reserve officials since then have made it unclear when the U.S. central bank will begin scaling back its bond-buying program, which took its toll on gold, especially amid broad expectations that a start date for tapering could come in December.
On Friday, St. Louis Fed President James Bullard said the Fed could decide at its October monetary policy meeting to taper its USD85 billion monthly asset-purchasing program.
The Federal Reserve will hold its next monetary policy meeting Oct. 29-30 but is not due to hold a press conference that day, which left many expecting a decision to taper asset purchases to come in December.
On Monday, however, Federal Reserve Bank of New York President William Dudley said monetary authorities want to be sure recovery is sustained before dismantling stimulus programs.
Separately, Dallas Fed President Richard Fisher, a noted policy hawk, said on Monday the decision to keep the Fed's bond-buying program unchanged has damaged the institution's credibility.
Soft consumer sentiment data hitting the wire earlier Tuesday curbed losses by keeping expectations going for the Fed to move later rather than sooner.
The Conference Board’s index of U.S. consumer confidence ticked down to 79.7 in September from 81.8 in August.
Analysts were expecting the figure to dip to 79.9.
Elsewhere on the Comex, silver for December delivery was down 1.30% at USD21.572 a troy ounce, while copper for December delivery was down 1.23% and trading at USD3.256 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,314.50 during U.S. afternoon hours, down 0.94%.
Gold prices hit a session low of USD1,306.20 a troy ounce and high of USD1,329.40 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, Wednesday's low, and resistance at USD1,331.80, Monday's high.
The December contract settled down 0.41% at USD1,327.00 a troy ounce on Monday.
Gold prices soared last week after the Fed made no changes to its USD85 billion bond-buying program.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more.
Conflicting statements from Federal Reserve officials since then have made it unclear when the U.S. central bank will begin scaling back its bond-buying program, which took its toll on gold, especially amid broad expectations that a start date for tapering could come in December.
On Friday, St. Louis Fed President James Bullard said the Fed could decide at its October monetary policy meeting to taper its USD85 billion monthly asset-purchasing program.
The Federal Reserve will hold its next monetary policy meeting Oct. 29-30 but is not due to hold a press conference that day, which left many expecting a decision to taper asset purchases to come in December.
On Monday, however, Federal Reserve Bank of New York President William Dudley said monetary authorities want to be sure recovery is sustained before dismantling stimulus programs.
Separately, Dallas Fed President Richard Fisher, a noted policy hawk, said on Monday the decision to keep the Fed's bond-buying program unchanged has damaged the institution's credibility.
Soft consumer sentiment data hitting the wire earlier Tuesday curbed losses by keeping expectations going for the Fed to move later rather than sooner.
The Conference Board’s index of U.S. consumer confidence ticked down to 79.7 in September from 81.8 in August.
Analysts were expecting the figure to dip to 79.9.
Elsewhere on the Comex, silver for December delivery was down 1.30% at USD21.572 a troy ounce, while copper for December delivery was down 1.23% and trading at USD3.256 a pound.