Investing.com- Gold futures rose modestly in Wednesday’s Asian session, paring losses incurred during Tuesday’s U.S. session as traders wait for the Federal Reserve to conclude its two-day meeting later today.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery gained 0.13% to USD1,711.85 per troy ounce in Asian trading Wednesday. The yellow metal traded as high as USD1,712.35 per ounce and as low as USD1,709.60.
In Tuesday’s U.S. session, gold settled down 0.29% at USD1,709.45 a troy ounce in U.S. trading, up from a session low of USD1,706.25 and down from a high of USD1,715.75 a troy ounce.
Gold futures were likely to test support at USD1,685.75 a troy ounce, Friday's low, and resistance at USD1,718.75, Monday's high.
The drop, albeit modest, during U.S. trading, could be a sign that traders are paring long bets on gold ahead of the conclusion of the Fed meeting. With U.S. interest rates hovering near historic lows, the central bank has little room to cut rates. The Fed has already promised to keep rates low through at least mid-2015.
That leaves gold bulls hoping the central bank will announce it intends to engage in further monetary stimulus in the form of the bond-buying program known as quantitative easing. Should the Fed not deliver on the expectation of added easing, gold futures could be vulnerable to some downside in Wednesday’s U.S. session.
Elsewhere, press reports noted gold production in South Africa, one of the world’s largest producers of the yellow metal, plunged in October amid labor strife in that country.
Looking at some of the other metals, Comex silver for March delivery added 0.25% to USD33.10 per ounce while copper fell 0.04% to USD3.687 an ounce. Platinum for January delivery fell 0.32% to USD1,632.10 an ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery gained 0.13% to USD1,711.85 per troy ounce in Asian trading Wednesday. The yellow metal traded as high as USD1,712.35 per ounce and as low as USD1,709.60.
In Tuesday’s U.S. session, gold settled down 0.29% at USD1,709.45 a troy ounce in U.S. trading, up from a session low of USD1,706.25 and down from a high of USD1,715.75 a troy ounce.
Gold futures were likely to test support at USD1,685.75 a troy ounce, Friday's low, and resistance at USD1,718.75, Monday's high.
The drop, albeit modest, during U.S. trading, could be a sign that traders are paring long bets on gold ahead of the conclusion of the Fed meeting. With U.S. interest rates hovering near historic lows, the central bank has little room to cut rates. The Fed has already promised to keep rates low through at least mid-2015.
That leaves gold bulls hoping the central bank will announce it intends to engage in further monetary stimulus in the form of the bond-buying program known as quantitative easing. Should the Fed not deliver on the expectation of added easing, gold futures could be vulnerable to some downside in Wednesday’s U.S. session.
Elsewhere, press reports noted gold production in South Africa, one of the world’s largest producers of the yellow metal, plunged in October amid labor strife in that country.
Looking at some of the other metals, Comex silver for March delivery added 0.25% to USD33.10 per ounce while copper fell 0.04% to USD3.687 an ounce. Platinum for January delivery fell 0.32% to USD1,632.10 an ounce.