Investing.com - Gold futures were higher on Thursday, rebounding from losses accrued in the previous session amid concerns over an earlier-than-expected end to the Federal Reserve’s quantitative easing program.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,379.65 a troy ounce during European morning hours, up 0.9% on the day.
Comex gold prices rose by as much as 1% earlier in the session to hit a daily high of USD1,381.15 a troy ounce.
Gold futures were likely to find support at USD1,337.85 a troy ounce, the low from May 20 and resistance at USD1,413.05, the previous session’s high.
Gold futures lost 1% on Wednesday after Federal Reserve Chairman Ben Bernanke said that a decision to scale back the central bank's asset purchase program could be taken in the "next few meetings" depending on economic data.
Bernanke had earlier said in prepared remarks to Congress that a premature tightening of monetary policy carried substantial risks to the economic recovery.
His comments at first dampened any thought that the central bank will ease back on its easy monetary policy, which has been beneficial to dollar-denominated commodities.
Meanwhile, Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
Gold prices have been under heavy selling pressure in recent sessions amid expectations the Fed will wind down its stimulus program, citing indications of an improving U.S. economic outlook.
Elsewhere on the Comex, silver for July delivery fell 0.8% to trade at USD22.30 a troy ounce, while copper for July delivery tumbled 2.45% to trade at USD3.298 a pound.
Copper prices came under pressure after data showed that manufacturing activity in China contracted for the first time in seven months in May.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.
The data added to lingering concerns over a slowdown in the world’s largest copper consumer.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,379.65 a troy ounce during European morning hours, up 0.9% on the day.
Comex gold prices rose by as much as 1% earlier in the session to hit a daily high of USD1,381.15 a troy ounce.
Gold futures were likely to find support at USD1,337.85 a troy ounce, the low from May 20 and resistance at USD1,413.05, the previous session’s high.
Gold futures lost 1% on Wednesday after Federal Reserve Chairman Ben Bernanke said that a decision to scale back the central bank's asset purchase program could be taken in the "next few meetings" depending on economic data.
Bernanke had earlier said in prepared remarks to Congress that a premature tightening of monetary policy carried substantial risks to the economic recovery.
His comments at first dampened any thought that the central bank will ease back on its easy monetary policy, which has been beneficial to dollar-denominated commodities.
Meanwhile, Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
Gold prices have been under heavy selling pressure in recent sessions amid expectations the Fed will wind down its stimulus program, citing indications of an improving U.S. economic outlook.
Elsewhere on the Comex, silver for July delivery fell 0.8% to trade at USD22.30 a troy ounce, while copper for July delivery tumbled 2.45% to trade at USD3.298 a pound.
Copper prices came under pressure after data showed that manufacturing activity in China contracted for the first time in seven months in May.
China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.
The data added to lingering concerns over a slowdown in the world’s largest copper consumer.