Investing.com - Gold prices rose on Tuesday after investors shrugged off soft economic indicators and went long on the metal on sentiment the Federal Reserve will leave monetary policy unchanged at a meeting wrapping up on Wednesday.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.53% at USD1,663.85 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,655.65 and down from a high of USD1,666.95 a troy ounce.
Gold futures were likely to test support USD1,653.35 a troy ounce, Monday's low, and resistance at USD1,695.85, last Tuesday's high.
The Federal Reserve will conclude a monetary policy meeting on Wednesday, and investors began to price in the possibility that the U.S. central bank will not alter its USD85 billion quantitative easing program even if it makes mention over when such a time may occur.
U.S. economic indicators have improved in recent months, while past recent Federal Reserve language has many market participants expecting monetary authorities to soon focus on when they should consider winding down stimulus measures.
The yellow metal, meanwhile, ignored economic indicators that would normally send prices falling by quelling appetite for risk.
The S&P/Case-Shiller home price index rose at an annualized rate of 5.5% in November from a year earlier, in line with market consensus.
Month-on-month, U.S. home prices rose 0.6% in November compared to expectations for a 0.7% increase, after rising by 0.7% in the preceding month.
Elsewhere, the Conference Board reported earlier that its index of U.S. consumer confidence fell to 58.6 in January from 66.7 in December, missing expectations for a decline to 64.0.
Meanwhile in Europe, the forward looking Gfk German Consumer Climate index, which forecasts consumer confidence, ticked up to 5.8 for February from an upwardly revised 5.7 in January.
Analysts were expecting the index to come in at 5.7 for February, which did provided the euro with support and gave gold room to edge up higher on the single currency's coattails.
Meanwhile on the Comex, silver for March delivery was up 1.74% and trading at USD31.315 a troy ounce, while copper for March delivery was up 0.77% and trading at USD3.690 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.53% at USD1,663.85 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,655.65 and down from a high of USD1,666.95 a troy ounce.
Gold futures were likely to test support USD1,653.35 a troy ounce, Monday's low, and resistance at USD1,695.85, last Tuesday's high.
The Federal Reserve will conclude a monetary policy meeting on Wednesday, and investors began to price in the possibility that the U.S. central bank will not alter its USD85 billion quantitative easing program even if it makes mention over when such a time may occur.
U.S. economic indicators have improved in recent months, while past recent Federal Reserve language has many market participants expecting monetary authorities to soon focus on when they should consider winding down stimulus measures.
The yellow metal, meanwhile, ignored economic indicators that would normally send prices falling by quelling appetite for risk.
The S&P/Case-Shiller home price index rose at an annualized rate of 5.5% in November from a year earlier, in line with market consensus.
Month-on-month, U.S. home prices rose 0.6% in November compared to expectations for a 0.7% increase, after rising by 0.7% in the preceding month.
Elsewhere, the Conference Board reported earlier that its index of U.S. consumer confidence fell to 58.6 in January from 66.7 in December, missing expectations for a decline to 64.0.
Meanwhile in Europe, the forward looking Gfk German Consumer Climate index, which forecasts consumer confidence, ticked up to 5.8 for February from an upwardly revised 5.7 in January.
Analysts were expecting the index to come in at 5.7 for February, which did provided the euro with support and gave gold room to edge up higher on the single currency's coattails.
Meanwhile on the Comex, silver for March delivery was up 1.74% and trading at USD31.315 a troy ounce, while copper for March delivery was up 0.77% and trading at USD3.690 a pound.