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Gold hits 1-week high, silver climbs 1% with Fed meeting in focus

Published 07/29/2014, 05:33 AM
Gold, silver futures rise ahead of Fed meeting
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Investing.com - Gold and silver futures were higher on Tuesday, as investors shifted their focus to the Federal Reserve's upcoming policy meeting, due to begin later in the day.

On the Comex division of the New York Mercantile Exchange, gold for December delivery rose to a session high of $1,314.40 a troy ounce, the most since July 22, before trimming gains to last trade at $1,310.70 a troy ounce during U.S. morning hours.

Gold ended Monday’s session up 0.04%, or 50 cents, to settle at $1,305.80 an ounce. Futures were likely to find support at $1,287.50, the low from July 24 and resistance at $1,320.40, the high from July 21.

Also on the Comex, silver for September delivery jumped 0.9%, or 18.5 cents, to trade at $20.75 a troy ounce.

Traders looked ahead to the Fed’s monetary policy statement due on Wednesday. The central bank is likely to stick to its timetable to taper its monthly bond purchases by another $10 billion to a total of $25 billion a month.

Meanwhile, Wednesday’s preliminary estimate on second quarter economic growth and Friday’s U.S. jobs report for July were both expected to indicate that the economic recovery is continuing.

Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.

Prices remained supported as tensions between Russia and the West over the situation in Ukraine remained high, while fighting between Israel and Hamas militants in Gaza also remained in focus.

Gold and silver are often seen as a haven investment in times of geopolitical uncertainty.

Elsewhere in metals trading, copper for September delivery shed 0.47%, or 1.5 cents, to trade at $3.228 a pound.

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