Investing.com - Gold futures added to strong gains in the first trading session of 2012 on Tuesday, as a broadly weaker U.S. dollar underlined prices ahead of the release of minutes from the Federal Reserve’s December policy meeting.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,593.15 a troy ounce during early U.S. morning trade, rallying 1.41%.
It earlier rose by as much as 1.77% to trade at USD1,598.75 a troy ounce, the highest since December 27.
Gold futures were likely to find support at USD1,550.15 a troy ounce, Friday’s low and short-term resistance at USD1,605.85, the high of December 27.
Comex trading remained closed on Monday due to the New Year’s holiday.
Gold futures started off the new year on a positive foot as the euro rose nearly 1% against the U.S. dollar, pulling further away from last week’s 15-month trough.
Gold's correlation with the euro/dollar exchange rate is at its most positive in nearly two years, meaning gold prices are more likely to move in synch with the euro than at any other time since January 2010.
Prices found further support amid reports Iran had produced its first nuclear fuel rod, boosting the safe haven appeal of the precious metal. Nuclear fuel rods contain pellets of enriched uranium that provide fuel for nuclear power plants.
The report came after the Islamic Republic said it had test-fired two long-range missiles over the weekend as part of an ongoing naval drill in the Strait of Hormuz.
Meanwhile, the Fed was to publish the minutes of its December policy meeting later in the day. Gold traders will pay close attention for any hints the central bank could introduce further stimulus measures in the near-term to boost U.S. economic growth.
Wall Street investment firm Merrill Lynch said earlier that it expects gold prices to average USD1,850 an ounce in 2012, representing a 17.6% increase over the 2011 spot price average.
Morgan Stanley offered a similar outlook. In a report published late Monday the bank projected gold to average USD2,200 an ounce in 2012, citing low interest rates in the U.S. and the potential for more economic stimulus in developed economies.
Elsewhere on the Comex, silver for March delivery surged 2.65% to trade at USD28.72 a troy ounce, while copper for March delivery jumped 1.85% to trade at USD3.497 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,593.15 a troy ounce during early U.S. morning trade, rallying 1.41%.
It earlier rose by as much as 1.77% to trade at USD1,598.75 a troy ounce, the highest since December 27.
Gold futures were likely to find support at USD1,550.15 a troy ounce, Friday’s low and short-term resistance at USD1,605.85, the high of December 27.
Comex trading remained closed on Monday due to the New Year’s holiday.
Gold futures started off the new year on a positive foot as the euro rose nearly 1% against the U.S. dollar, pulling further away from last week’s 15-month trough.
Gold's correlation with the euro/dollar exchange rate is at its most positive in nearly two years, meaning gold prices are more likely to move in synch with the euro than at any other time since January 2010.
Prices found further support amid reports Iran had produced its first nuclear fuel rod, boosting the safe haven appeal of the precious metal. Nuclear fuel rods contain pellets of enriched uranium that provide fuel for nuclear power plants.
The report came after the Islamic Republic said it had test-fired two long-range missiles over the weekend as part of an ongoing naval drill in the Strait of Hormuz.
Meanwhile, the Fed was to publish the minutes of its December policy meeting later in the day. Gold traders will pay close attention for any hints the central bank could introduce further stimulus measures in the near-term to boost U.S. economic growth.
Wall Street investment firm Merrill Lynch said earlier that it expects gold prices to average USD1,850 an ounce in 2012, representing a 17.6% increase over the 2011 spot price average.
Morgan Stanley offered a similar outlook. In a report published late Monday the bank projected gold to average USD2,200 an ounce in 2012, citing low interest rates in the U.S. and the potential for more economic stimulus in developed economies.
Elsewhere on the Comex, silver for March delivery surged 2.65% to trade at USD28.72 a troy ounce, while copper for March delivery jumped 1.85% to trade at USD3.497 a pound.