Investing.com - Gold futures shook off earlier losses to move higher during U.S. morning hours on Tuesday, briefly trading above the key USD1,600-an-ounce level as market players bet that policymakers will implement stimulus measures to help spur weak global growth.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,596.65 a troy ounce during U.S. morning trade, gaining 0.45%.
It earlier rose by as much as 0.75% to hit a two-day high of USD1,601.25 a troy ounce.
Gold futures were likely to find support at USD1,551.35 a troy ounce, the low from June 29 and near-term resistance at USD1,609.85, the high from July 6.
Fears over the global economic outlook intensified after official data showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
But gold prices found support amid expectations that relentlessly poor data from China will push policy makers to introduce fresh stimulus to support the economy.
Investors were looking ahead to Chinese economic data due out later this week, including second quarter growth figures, to gauge whether China is a heading towards a hard or a soft landing.
Elsewhere, Bank of Japan Governor Masaaki Shirakawa said earlier that the central bank planned to carry out powerful easing measures to help fight deflation.
The comments come ahead of a BOJ two-day policy-board meeting starting Wednesday.
Meanwhile, gold traders already shifted their focus to the release of the minutes of the Federal Reserve’s most recent policy meeting on Wednesday, which could show whether the central bank is leaning toward more stimulus to boost growth.
Gold traders watch the Fed minutes closely for hints of whether the central bank will engineer another round of asset purchases, or quantitative easing.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Markets remained jittery as Germany's top court was due to decide whether the EU's permanent bailout fund is compatible with national law, potentially leading to deeper fiscal integration within the region.
Traders also eyed talks between EU finance ministers, after their euro zone counterparts held a previous meeting on Monday.
Euro zone ministers agreed on Monday to make EUR30 billion in aid available to assist Spain’s struggling banking sector by the end of the month, while also supporting plans to extend Spain’s deficit target deadline by one year to 2014.
Spain’s 10-year government bonds eased sharply to 6.76% earlier, moving below the critical 7% threshold which is widely seen as unsustainable in the long term.
Elsewhere on the Comex, silver for September delivery fell 0.55% to trade at USD27.28 a troy ounce, while copper for September delivery shed 0.2% to trade at USD3.426 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,596.65 a troy ounce during U.S. morning trade, gaining 0.45%.
It earlier rose by as much as 0.75% to hit a two-day high of USD1,601.25 a troy ounce.
Gold futures were likely to find support at USD1,551.35 a troy ounce, the low from June 29 and near-term resistance at USD1,609.85, the high from July 6.
Fears over the global economic outlook intensified after official data showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
But gold prices found support amid expectations that relentlessly poor data from China will push policy makers to introduce fresh stimulus to support the economy.
Investors were looking ahead to Chinese economic data due out later this week, including second quarter growth figures, to gauge whether China is a heading towards a hard or a soft landing.
Elsewhere, Bank of Japan Governor Masaaki Shirakawa said earlier that the central bank planned to carry out powerful easing measures to help fight deflation.
The comments come ahead of a BOJ two-day policy-board meeting starting Wednesday.
Meanwhile, gold traders already shifted their focus to the release of the minutes of the Federal Reserve’s most recent policy meeting on Wednesday, which could show whether the central bank is leaning toward more stimulus to boost growth.
Gold traders watch the Fed minutes closely for hints of whether the central bank will engineer another round of asset purchases, or quantitative easing.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Markets remained jittery as Germany's top court was due to decide whether the EU's permanent bailout fund is compatible with national law, potentially leading to deeper fiscal integration within the region.
Traders also eyed talks between EU finance ministers, after their euro zone counterparts held a previous meeting on Monday.
Euro zone ministers agreed on Monday to make EUR30 billion in aid available to assist Spain’s struggling banking sector by the end of the month, while also supporting plans to extend Spain’s deficit target deadline by one year to 2014.
Spain’s 10-year government bonds eased sharply to 6.76% earlier, moving below the critical 7% threshold which is widely seen as unsustainable in the long term.
Elsewhere on the Comex, silver for September delivery fell 0.55% to trade at USD27.28 a troy ounce, while copper for September delivery shed 0.2% to trade at USD3.426 a pound.