Investing.com - Gold prices rose on Tuesday, a day before the release of the minutes from the Federal Reserve's October monetary policy meeting, with many investors expecting the document to suggest no specific hints as to when the U.S. central bank will begin scaling back stimulus programs.
Stimulus tools such as the Fed's USD85 billion in monthly bond prices aim to spur recovery by driving down interest rates, weakening the U.S. dollar in the process and thus making gold an attractive hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,273.50 during U.S. afternoon hours, up 0.09%.
Gold prices hit a session low of USD1,268.50 a troy ounce and high of USD1,278.10 a troy ounce.
Gold futures were likely to find support at USD1,260.70 a troy ounce, the low from Nov. 12, and resistance at USD1,293.60, Thursday's high.
The December contract settled down 1.17% at USD1,272.30 a troy ounce on Monday.
Federal Reserve Chair Ben Bernanke is due to speak in public later Tuesday, and markets took up positions betting that the nation's top economist won't signal the need for a timetable to begin tapering the Fed's USD85 billion in monthly bond purchases, which keep the greenback weak to spur recovery.
Gold and the dollar tend to trade inversely with one another.
Last week, Fed Chair Nominee Janet Yellen suggested the economy still needs the U.S. central bank's ultra-loose monetary policies to ensure recovery, and on Monday, the Fed's Bank of New York chief William C. Dudley said he was hopeful that recovery will gain steam soon but made no indication over a need to consider scaling back bond purchases.
Investors also bet that the minutes of the Fed’s October meeting due for release on Wednesday will paint a similar picture for the need to hold off on scaling back stimulus tools for now, which was bullish for gold as was a rising euro.
Across the Atlantic, European Central Bank board member Joerg Asmussen warned that monetary authorities must be “very careful” when considering the use of negative interest rates to steer the economy away from low inflation rates, which supported the single currency.
Elsewhere, data released on Tuesday showed that the ZEW index of German economic sentiment rose to a four-year high in November.
The ZEW index of German economic sentiment rose to 54.6 this month from October’s 52.8 reading, beating market forecasts for the index improve to 54.0.
Elsewhere on the Comex, silver for December delivery was down 0.10% at USD20.337 a troy ounce, while copper for December delivery was up 0.30% and trading at USD3.159 a pound.
Stimulus tools such as the Fed's USD85 billion in monthly bond prices aim to spur recovery by driving down interest rates, weakening the U.S. dollar in the process and thus making gold an attractive hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,273.50 during U.S. afternoon hours, up 0.09%.
Gold prices hit a session low of USD1,268.50 a troy ounce and high of USD1,278.10 a troy ounce.
Gold futures were likely to find support at USD1,260.70 a troy ounce, the low from Nov. 12, and resistance at USD1,293.60, Thursday's high.
The December contract settled down 1.17% at USD1,272.30 a troy ounce on Monday.
Federal Reserve Chair Ben Bernanke is due to speak in public later Tuesday, and markets took up positions betting that the nation's top economist won't signal the need for a timetable to begin tapering the Fed's USD85 billion in monthly bond purchases, which keep the greenback weak to spur recovery.
Gold and the dollar tend to trade inversely with one another.
Last week, Fed Chair Nominee Janet Yellen suggested the economy still needs the U.S. central bank's ultra-loose monetary policies to ensure recovery, and on Monday, the Fed's Bank of New York chief William C. Dudley said he was hopeful that recovery will gain steam soon but made no indication over a need to consider scaling back bond purchases.
Investors also bet that the minutes of the Fed’s October meeting due for release on Wednesday will paint a similar picture for the need to hold off on scaling back stimulus tools for now, which was bullish for gold as was a rising euro.
Across the Atlantic, European Central Bank board member Joerg Asmussen warned that monetary authorities must be “very careful” when considering the use of negative interest rates to steer the economy away from low inflation rates, which supported the single currency.
Elsewhere, data released on Tuesday showed that the ZEW index of German economic sentiment rose to a four-year high in November.
The ZEW index of German economic sentiment rose to 54.6 this month from October’s 52.8 reading, beating market forecasts for the index improve to 54.0.
Elsewhere on the Comex, silver for December delivery was down 0.10% at USD20.337 a troy ounce, while copper for December delivery was up 0.30% and trading at USD3.159 a pound.