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Gold makes cautious gains as investors brace for Federal Reserve meet

Published 07/29/2013, 01:12 PM
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Investing.com - Gold prices made cautious gains on Monday as investors prepared for the Federal Reserve to make its Wednesday announcement on monetary policy, a key driver for the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,329.55 during U.S. afternoon hours, up 0.58%.

The December contract settled down 0.57% at USD1,321.90 a troy ounce on Friday.

Gold futures were likely to find support at USD1,308.75 a troy ounce, Thursday's low, and resistance at USD1,340.15, Friday's high.

Gold prices edged higher amid growing sentiment that while the U.S. economy continues to improve, recovery is not going fast enough to prompt the Federal Reserve to rush to taper monetary stimulus programs such as its monthly USD85 billion bond-buying program, which has sent gold rising by keeping the dollar weak.

Gold and the dollar tend to trade inversely with one another.

While consumer sentiment and housing sales figures have beaten expectations in recent sessions, weekly jobless claims recently disappointed.

Earlier Monday, the National Association of Realtors reported earlier that pending home sales in the U.S. fell 0.4% in June, less than an expected 1% decline but below a 5.8% rise the previous month, which cemented expectations that stimulus programs may be around for a while longer.

Gold prices have fallen in recent months on widespread expectations that sooner or later, monetary stimulus measures will end though uncertainty over the timing of such events has allowed for rallies.

Elsewhere on the Comex, silver for September delivery was up 0.52% at USD19.873 a troy ounce, while copper for September delivery was up 0.06% and trading at USD3.107 a pound.










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