Investing.com - Gold futures hovered near the previous session’s one-week high on Thursday, after the Federal Reserve kept its ultra-loose monetary policy intact at the outcome of its latest policy meeting.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,677.35 a troy ounce during European morning trade, down 0.25% on the day.
Prices traded in a range between USD1,675.85 a troy ounce, the daily low and a session high of USD1,681.75 a troy ounce. Gold futures rose to USD1,684.35 a troy ounce on Wednesday, the strongest level since January 24.
Gold prices were likely to find support at USD1,653.35 a troy ounce, the low from January 28 and near-term resistance at USD1,685.35, the high from January 24.
The Fed said Wednesday that it will continue its USD85 billion a month quantitative easing program “if the outlook for the labor market does not improve substantially.”
The U.S. central bank also reiterated that it will continue to hold interest rates close to zero until the unemployment rate falls below 6.5%.
The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
The statement came after data showed that the U.S. economy contracted 0.1% in the fourth quarter, confounding expectations for growth of 1.1% and a sharp slowdown from growth of 3.1% in the preceding quarter.
With the Fed meeting behind them, gold traders will now turn their attention to Friday's nonfarm employment report.
Elsewhere on the Comex, silver for March delivery fell 0.5% to trade at USD32.00 a troy ounce, while copper for March delivery added 0.4% to trade at USD3.765 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,677.35 a troy ounce during European morning trade, down 0.25% on the day.
Prices traded in a range between USD1,675.85 a troy ounce, the daily low and a session high of USD1,681.75 a troy ounce. Gold futures rose to USD1,684.35 a troy ounce on Wednesday, the strongest level since January 24.
Gold prices were likely to find support at USD1,653.35 a troy ounce, the low from January 28 and near-term resistance at USD1,685.35, the high from January 24.
The Fed said Wednesday that it will continue its USD85 billion a month quantitative easing program “if the outlook for the labor market does not improve substantially.”
The U.S. central bank also reiterated that it will continue to hold interest rates close to zero until the unemployment rate falls below 6.5%.
The Fed’s quantitative easing program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
The statement came after data showed that the U.S. economy contracted 0.1% in the fourth quarter, confounding expectations for growth of 1.1% and a sharp slowdown from growth of 3.1% in the preceding quarter.
With the Fed meeting behind them, gold traders will now turn their attention to Friday's nonfarm employment report.
Elsewhere on the Comex, silver for March delivery fell 0.5% to trade at USD32.00 a troy ounce, while copper for March delivery added 0.4% to trade at USD3.765 a pound.