Investing.com – Gold futures regained strength on Tuesday, as the previous day’s sharp drop created buying opportunities for investors ahead of the release of minutes from the Federal Reserve’s August policy-setting meeting.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,797.45 a troy ounce during late Asian trade, climbing 0.5%.
It earlier rose as much as 0.7% to trade at a daily high of USD1,801.05 a troy ounce.
On Monday, gold futures fell nearly 1.8%, while spot gold prices tumbled almost 2.6% as increased risk appetite dampened the appeal of the precious metal.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid ongoing concerns over the global economic outlook.
Wall Street investment bank Morgan Stanley said in a report Monday that the recent price decline provided a “buying opportunity” for investors wanting to enter the market and that it continued to favor gold as “an insurance policy against a rising probability of worsening global systemic risks.”
Increased physical demand in India also supported prices, as consumers began stepping up purchases of bullion ahead of the gold-buying wedding and festival season due to start in September.
According to Rajesh Mehta, chairman of Rajesh Exports, India’s biggest jewelry maker, gold demand in India could jump by 25% to 250 metric tons during the upcoming festival season.
Meanwhile, markets were awaiting the release of the minutes from the Fed’s August 9 meeting, at which it pledged to keep its benchmark interest rate at an all-time low “at least through mid-2013.”
Speeches from Fed Open Market Committee members Charles Evans and Narayana Kocherlakota will also be closely watched for any hints regarding further easing measures after Fed Chair Ben Bernanke said Friday that there was no need for an immediate round of additional stimulus but left options open.
Elsewhere on the Comex, silver for December delivery shed 0.6% to trade at USD40.73 a troy ounce, while copper for December delivery rose 0.81% to trade USD4.147 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,797.45 a troy ounce during late Asian trade, climbing 0.5%.
It earlier rose as much as 0.7% to trade at a daily high of USD1,801.05 a troy ounce.
On Monday, gold futures fell nearly 1.8%, while spot gold prices tumbled almost 2.6% as increased risk appetite dampened the appeal of the precious metal.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid ongoing concerns over the global economic outlook.
Wall Street investment bank Morgan Stanley said in a report Monday that the recent price decline provided a “buying opportunity” for investors wanting to enter the market and that it continued to favor gold as “an insurance policy against a rising probability of worsening global systemic risks.”
Increased physical demand in India also supported prices, as consumers began stepping up purchases of bullion ahead of the gold-buying wedding and festival season due to start in September.
According to Rajesh Mehta, chairman of Rajesh Exports, India’s biggest jewelry maker, gold demand in India could jump by 25% to 250 metric tons during the upcoming festival season.
Meanwhile, markets were awaiting the release of the minutes from the Fed’s August 9 meeting, at which it pledged to keep its benchmark interest rate at an all-time low “at least through mid-2013.”
Speeches from Fed Open Market Committee members Charles Evans and Narayana Kocherlakota will also be closely watched for any hints regarding further easing measures after Fed Chair Ben Bernanke said Friday that there was no need for an immediate round of additional stimulus but left options open.
Elsewhere on the Comex, silver for December delivery shed 0.6% to trade at USD40.73 a troy ounce, while copper for December delivery rose 0.81% to trade USD4.147 a pound.