Investing.com - Gold futures held steady in rangebound trade during European morning trade on Wednesday, as market participants awaited the outcome of a meeting of Federal Reserve policy makers later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,641.85 a troy ounce during early European trade, easing down 0.1%.
The June contract traded in a tight range of USD1,643.75, the daily high and a session low of USD1,641.45 a troy ounce.
Gold futures were likely to find short-term support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,658.95, the high from April 16.
Market participants were looking ahead to the outcome of the Federal Reserve's two-day policy-setting meeting later in the day.
While the Fed is expected to reiterate its intent to hold U.S. interest rates near zero through 2014, traders will be seeking clues towards the bank’s attitude on further quantitative easing measures.
Traders are hoping there might be some show of support for a third round of bond purchases to support the U.S. economy.
Previous rounds of asset purchases by the Fed weakened the dollar and sent gold prices soaring to an all-time high above USD1,920 an ounce in September.
Gold can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.
The precious metal rallied a 2012 high around USD1,790 in late February after the Fed at the time said it would keep interest rates near zero until at least by the end of 2014.
Gold prices ended higher on Tuesday as investors were relieved when a successful auction sent yields on Dutch debt lower, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However gains were limited after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.
A weakening euro and stronger dollar have weighed on gold instead.
Elsewhere on the Comex, silver for July delivery eased up 0.1% to trade at USD30.84 a troy ounce, while copper for July delivery shed 0.15% to trade at USD3.676 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,641.85 a troy ounce during early European trade, easing down 0.1%.
The June contract traded in a tight range of USD1,643.75, the daily high and a session low of USD1,641.45 a troy ounce.
Gold futures were likely to find short-term support at USD1,613.55 a troy ounce, the low from April 4 and resistance at USD1,658.95, the high from April 16.
Market participants were looking ahead to the outcome of the Federal Reserve's two-day policy-setting meeting later in the day.
While the Fed is expected to reiterate its intent to hold U.S. interest rates near zero through 2014, traders will be seeking clues towards the bank’s attitude on further quantitative easing measures.
Traders are hoping there might be some show of support for a third round of bond purchases to support the U.S. economy.
Previous rounds of asset purchases by the Fed weakened the dollar and sent gold prices soaring to an all-time high above USD1,920 an ounce in September.
Gold can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.
The precious metal rallied a 2012 high around USD1,790 in late February after the Fed at the time said it would keep interest rates near zero until at least by the end of 2014.
Gold prices ended higher on Tuesday as investors were relieved when a successful auction sent yields on Dutch debt lower, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However gains were limited after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.
A weakening euro and stronger dollar have weighed on gold instead.
Elsewhere on the Comex, silver for July delivery eased up 0.1% to trade at USD30.84 a troy ounce, while copper for July delivery shed 0.15% to trade at USD3.676 a pound.