Investing.com - Gold prices edged lower on Monday amid cautious hopes for U.S. lawmakers and the White House to agree on a spending plan to reopen the government and give it the power to borrow and avoid default, which gave the dollar support.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,274.00 during U.S. afternoon hours, down 0.20%.
Gold prices hit a session low of USD1,251.10 a troy ounce and high of USD1,277.30 a troy ounce.
Gold futures were likely to find support at USD1,215.55 a troy ounce, the low from July 8, and resistance at USD1,289.70, Monday's high.
The December contract settled up 0.66% at USD1,276.60 a troy ounce on Monday.
Lawmakers on Tuesday compared spending plans prepared in both the Senate and the House with hopes all sides can eventually agree on terms to reopen the government as well as let it borrow to avoid defaulting on its obligations.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
Both proposals would fund the government through Jan. 15, 2014, and would also suspend the U.S. debt limit until Feb. 7, 2014, and while no deal was in place at the time of writing, optimism that an accord will emerge soon sent the dollar rising, which came at gold's expense.
Elsewhere, data released earlier revealed that an index of manufacturing activity in the New York region came in below expectations this month.
The Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 for October from 6.29 in September. Analysts had expected a reading of 7.0.
Elsewhere on the Comex, silver for December delivery was down 0.45% at USD21.258 a troy ounce, while copper for December delivery was up 0.13% and trading at USD3.307 a pound.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,274.00 during U.S. afternoon hours, down 0.20%.
Gold prices hit a session low of USD1,251.10 a troy ounce and high of USD1,277.30 a troy ounce.
Gold futures were likely to find support at USD1,215.55 a troy ounce, the low from July 8, and resistance at USD1,289.70, Monday's high.
The December contract settled up 0.66% at USD1,276.60 a troy ounce on Monday.
Lawmakers on Tuesday compared spending plans prepared in both the Senate and the House with hopes all sides can eventually agree on terms to reopen the government as well as let it borrow to avoid defaulting on its obligations.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
Both proposals would fund the government through Jan. 15, 2014, and would also suspend the U.S. debt limit until Feb. 7, 2014, and while no deal was in place at the time of writing, optimism that an accord will emerge soon sent the dollar rising, which came at gold's expense.
Elsewhere, data released earlier revealed that an index of manufacturing activity in the New York region came in below expectations this month.
The Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 for October from 6.29 in September. Analysts had expected a reading of 7.0.
Elsewhere on the Comex, silver for December delivery was down 0.45% at USD21.258 a troy ounce, while copper for December delivery was up 0.13% and trading at USD3.307 a pound.