Investing.com - Gold prices edged modestly higher in subdued holiday trade on Tuesday, though gains were expected to remain limited amid indications the U.S. economic recovery is deepening.
Trading volumes are expected to remain light due to the Christmas holiday and as many traders already closed books to lock in profit before the end of the year.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,198.60 a troy ounce during European morning trade, up 0.15%. Gold prices held in a range between USD1,196.20 a troy ounce and USD1,199.80 a troy ounce.
Futures were likely to find support at USD1,186.00 a troy ounce, the low from December 19 and resistance at USD1,226.00, the high from December 19.
The February contract settled 0.56% lower on Monday to end at USD1,197.00 a troy ounce after the Commerce Department said that U.S. personal spending rose 0.5% last month, in line with expectations and the highest since June.
Market players looked ahead to U.S. data on durable goods orders and new home sales later in the day, to gauge if the U.S. economy will be strong enough to allow the Federal Reserve to continue withdrawing support through 2014.
Comex gold prices plunged to USD1,186,00 a troy ounce last Thursday, the lowest since June 28, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Gold is down approximately 29% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, silver for March delivery dipped 0.3% to trade at USD19.35 a troy ounce, while copper futures for March delivery inched up 0.15% to trade at USD3.313 a pound.
Trading volumes are expected to remain light due to the Christmas holiday and as many traders already closed books to lock in profit before the end of the year.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,198.60 a troy ounce during European morning trade, up 0.15%. Gold prices held in a range between USD1,196.20 a troy ounce and USD1,199.80 a troy ounce.
Futures were likely to find support at USD1,186.00 a troy ounce, the low from December 19 and resistance at USD1,226.00, the high from December 19.
The February contract settled 0.56% lower on Monday to end at USD1,197.00 a troy ounce after the Commerce Department said that U.S. personal spending rose 0.5% last month, in line with expectations and the highest since June.
Market players looked ahead to U.S. data on durable goods orders and new home sales later in the day, to gauge if the U.S. economy will be strong enough to allow the Federal Reserve to continue withdrawing support through 2014.
Comex gold prices plunged to USD1,186,00 a troy ounce last Thursday, the lowest since June 28, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Gold is down approximately 29% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, silver for March delivery dipped 0.3% to trade at USD19.35 a troy ounce, while copper futures for March delivery inched up 0.15% to trade at USD3.313 a pound.