Investing.com - Gold prices fell on Wednesday after profit taking wiped out gains stemming from expectations for the Federal Reserve to hold off on announcing plans to taper stimulus measures at a monetary policy meeting next week.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,256.70 during U.S. afternoon hours, down 0.35%.
Gold prices hit a session low of USD1,253.40 a troy ounce and high of USD1,262.90 a troy ounce.
Gold futures were likely to find support at USD1,224.80 a troy ounce, Monday's low, and resistance at USD1,267.30, Tuesday's high.
The February contract settled up 2.18% at USD1,261.10 a troy ounce on Tuesday.
Gold prices fell due to uncertainty over the fate of the Fed's USD85 billion in monthly bond purchases, which have supported the yellow metal for over a year by driving down interest rates to spur recovery, weakening the dollar in the process.
Gold and the dollar tend to trade inversely with one another.
Better-than-expected labor and sentiment data released recently sparked market talk that the Fed may decide to trim asset purchases at its Dec. 17-18 monetary policy meeting, especially after lawmakers agreed on a way out of a budget impasse that could clear up U.S. fiscal uncertainties and spur recovery.
Senate Democrats and Republicans agreed on a deal setting a 2014 budget at USD1.012 trillion, and a 2015 budget at USD1.014 trillion in a fiscal plan that would reduce automatic spending cuts and deficit levels by USD23 billion over two years.
Gold rose to levels ripe for profit taking on expectations that the Federal Reserve may opt to wait until 2014 before deciding on the fate of its bond-buying program.
Elsewhere on the Comex, silver for March delivery was up 0.11% at USD20.337 a troy ounce, while copper for March delivery was up 0.81% and trading at USD3.293 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,256.70 during U.S. afternoon hours, down 0.35%.
Gold prices hit a session low of USD1,253.40 a troy ounce and high of USD1,262.90 a troy ounce.
Gold futures were likely to find support at USD1,224.80 a troy ounce, Monday's low, and resistance at USD1,267.30, Tuesday's high.
The February contract settled up 2.18% at USD1,261.10 a troy ounce on Tuesday.
Gold prices fell due to uncertainty over the fate of the Fed's USD85 billion in monthly bond purchases, which have supported the yellow metal for over a year by driving down interest rates to spur recovery, weakening the dollar in the process.
Gold and the dollar tend to trade inversely with one another.
Better-than-expected labor and sentiment data released recently sparked market talk that the Fed may decide to trim asset purchases at its Dec. 17-18 monetary policy meeting, especially after lawmakers agreed on a way out of a budget impasse that could clear up U.S. fiscal uncertainties and spur recovery.
Senate Democrats and Republicans agreed on a deal setting a 2014 budget at USD1.012 trillion, and a 2015 budget at USD1.014 trillion in a fiscal plan that would reduce automatic spending cuts and deficit levels by USD23 billion over two years.
Gold rose to levels ripe for profit taking on expectations that the Federal Reserve may opt to wait until 2014 before deciding on the fate of its bond-buying program.
Elsewhere on the Comex, silver for March delivery was up 0.11% at USD20.337 a troy ounce, while copper for March delivery was up 0.81% and trading at USD3.293 a pound.