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Gold slightly higher on eve of Fed decision

Published 07/30/2013, 08:31 PM
Updated 07/30/2013, 08:32 PM
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Investing.com - Gold futures traded slightly higher in the early part of Wednesday’s Asian session as traders await the Federal Reserve's decision on monetary policy later Wednesday.

On the Comex division of the New York Mercantile Exchange, gold futures for September delivery inched up 0.01% to USD1,324.95 per troy ounce in Asian trading Wednesday after settling down 0.31% during Tuesday’s U.S. session. Gold’s lower close in the U.S. Tuesday was its fourth close to the downside in the past six trading sessions.

Gold futures were weighed on a bit Tuesday due to more mediocre U.S. economic data. In U.S. economic news out Tuesday, the S&P/Case-Shiller Home Price Index of 20 U.S. metro areas rose 1% in May, below the 1.3% increase economists expected. Year-over-year growth was 12.2%, just below the 12.3% economists forecast.

The Conference Board said consumer confidence fell to 80.3 in July from a reading of 82.1 in June. U.S. consumer confidence is still near its highest levels in five years.

With the Fed news looming, many traders are hoping the U.S. central bank will provide some clue as to when it may begin tapering stimulus program.

Although is coming off its worst quarterly decline in multiple decades, stimulus programs such as the Fed’s USD85 billion bond-buying effort are thought to be dollar-destructive and helpful to dollar-denominated commodities such as gold.

Elsewhere, press reports said gold imports in India, the world’s largest consumer of the yellow metal, have been halted twice in the past week, sending prices soaring there due to a so-called scarcity premium.

Meanwhile, Comex silver for September delivery inched up 0.05% to USD19.690 per ounce while copper for September delivery rose 0.15% to USD3.046 per ounce.


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