Investing.com - Gold futures inched higher during European morning trade on Tuesday, with caution setting in ahead of the European Central Bank's policy meeting later in the week.
Gold traders also remained focused on the outlook for Federal Reserve monetary policy, as well as political developments in the U.S.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,649.45 a troy ounce during European morning trade, up 0.2% on the day.
Prices held in tight trading range between USD1,646.85 a troy ounce, the daily low and a session high of USD1,652.95 a troy ounce. Gold futures fell to USD1,626.05 a troy ounce on January 4, the lowest level since August 21.
Gold prices were likely to find support at USD1,626.05 a troy ounce, the low from January 4 and resistance at USD1,690.55, January 3’s high.
Investors are taking a wait-and-see approach ahead of a policy meeting by the European Central Bank on Thursday to see if the central bank will modify its benchmark interest rate.
German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaris are scheduled to meet in Berlin later in the day to review Greece's progress in tackling its deficit.
The meeting comes ahead of a summit of Eurogroup of finance ministers on January 21, when a decision on whether to release the next tranche of bailout loans for the debt-strapped country will be made.
Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further U.S. budget cuts and raising the U.S. debt ceiling.
Gold futures tumbled to a four-month low last week after the minutes from the Federal Reserve’s December meeting indicated that the central bank could end its quantitative easing program earlier-than-expected.
According to the minutes, several Fed officials thought the central bank would be able to slow or stop its bond-buying program well before December 2013.
The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
Elsewhere on the Comex, silver for March delivery added 0.2% to trade at USD30.14 a troy ounce, while copper for March delivery shed 0.35% to trade at USD3.666 a pound.
Copper traders are looking ahead to a flurry of Chinese economic data scheduled to come out later in the week. The world’s largest copper consumer will release monthly trade data on Thursday, while inflation figures are due on Friday.
Gold traders also remained focused on the outlook for Federal Reserve monetary policy, as well as political developments in the U.S.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,649.45 a troy ounce during European morning trade, up 0.2% on the day.
Prices held in tight trading range between USD1,646.85 a troy ounce, the daily low and a session high of USD1,652.95 a troy ounce. Gold futures fell to USD1,626.05 a troy ounce on January 4, the lowest level since August 21.
Gold prices were likely to find support at USD1,626.05 a troy ounce, the low from January 4 and resistance at USD1,690.55, January 3’s high.
Investors are taking a wait-and-see approach ahead of a policy meeting by the European Central Bank on Thursday to see if the central bank will modify its benchmark interest rate.
German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaris are scheduled to meet in Berlin later in the day to review Greece's progress in tackling its deficit.
The meeting comes ahead of a summit of Eurogroup of finance ministers on January 21, when a decision on whether to release the next tranche of bailout loans for the debt-strapped country will be made.
Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further U.S. budget cuts and raising the U.S. debt ceiling.
Gold futures tumbled to a four-month low last week after the minutes from the Federal Reserve’s December meeting indicated that the central bank could end its quantitative easing program earlier-than-expected.
According to the minutes, several Fed officials thought the central bank would be able to slow or stop its bond-buying program well before December 2013.
The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
Elsewhere on the Comex, silver for March delivery added 0.2% to trade at USD30.14 a troy ounce, while copper for March delivery shed 0.35% to trade at USD3.666 a pound.
Copper traders are looking ahead to a flurry of Chinese economic data scheduled to come out later in the week. The world’s largest copper consumer will release monthly trade data on Thursday, while inflation figures are due on Friday.