Investing.com – Gold futures traded in a tight range on Wednesday, fluctuating between small gains and losses as the previous day’s rally prompted some investors to cash out of the market to lock in gains.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,834.45 a troy ounce during late Asian trade, easing down 0.2%.
The gold contract traded between a range of USD1,826.65, the daily low and USD1,837.75, the daily high.
Gold prices rallied nearly 2.5% on Tuesday, as speculation that the Federal Reserve will introduce further easing measures to prop up the U.S. economy buoyed prices.
Minutes of the Fed’s August policy setting meeting published Tuesday revealed that some policy makers favored more aggressive action to stimulate the U.S. economy, including buying more government debt.
The minutes were published after Chicago Fed President Charles Evans said that the central bank should consider introducing further easing measures unless the economy shows “significant” improvement.
Evans, who is a voting member on the Fed’s Open Market Committee, added that the Fed’s bond-buying program, known as quantitative easing “needs to stay in place until unemployment drops below 7% or if inflation gets past 3%”.
This added to speculation that the Fed may act after its extended two-day meeting in September.
Meanwhile, global financial service provider UBS reaffirmed its one-month gold price forecast of USD1,950 a troy ounce and raised its three-month forecast to USD2,100 per ounce.
In a report published Tuesday, the Swiss lender said the “recent sell-off hasn't done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid.”
Elsewhere on the Comex, silver for December delivery eased up 0.15% to trade at USD41.49 a troy ounce, while copper for December delivery rose 0.43% to trade USD4.169 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,834.45 a troy ounce during late Asian trade, easing down 0.2%.
The gold contract traded between a range of USD1,826.65, the daily low and USD1,837.75, the daily high.
Gold prices rallied nearly 2.5% on Tuesday, as speculation that the Federal Reserve will introduce further easing measures to prop up the U.S. economy buoyed prices.
Minutes of the Fed’s August policy setting meeting published Tuesday revealed that some policy makers favored more aggressive action to stimulate the U.S. economy, including buying more government debt.
The minutes were published after Chicago Fed President Charles Evans said that the central bank should consider introducing further easing measures unless the economy shows “significant” improvement.
Evans, who is a voting member on the Fed’s Open Market Committee, added that the Fed’s bond-buying program, known as quantitative easing “needs to stay in place until unemployment drops below 7% or if inflation gets past 3%”.
This added to speculation that the Fed may act after its extended two-day meeting in September.
Meanwhile, global financial service provider UBS reaffirmed its one-month gold price forecast of USD1,950 a troy ounce and raised its three-month forecast to USD2,100 per ounce.
In a report published Tuesday, the Swiss lender said the “recent sell-off hasn't done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid.”
Elsewhere on the Comex, silver for December delivery eased up 0.15% to trade at USD41.49 a troy ounce, while copper for December delivery rose 0.43% to trade USD4.169 a pound.