Investing.com - Gold futures remained higher during European early afternoon trading hours on Wednesday, ahead of the release of U.S. economic reports, as investors returned to the market to seek cheap valuations in wake of recent losses.
Gains were limited however by ongoing speculation over the timing of the Federal Reserve’s widely-expected reduction in monthly bond purchases.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,320.70 a troy ounce during European afternoon hours, up 0.34%.
The December contract ended 0.8% lower on Tuesday to settle at USD1,316.30 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, the low from September 18 and resistance at USD1,366.50, the high from September 20.
Gold prices rallied after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.
Fed Chairman Ben Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course."
Confusion over the future direction of U.S. monetary policy persisted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking on Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
However, Dudley’s comments contrasted with remarks from St. Louis Fed President James Bullard made late last week, who said that a small tapering of bond purchases is still “possible” at the Fed’s October meeting.
The Fed will hold its next monetary policy meeting on Oct. 29-30.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
Elsewhere on the Comex, silver for December delivery rose 0.23% to trade at USD21.633 a troy ounce, while copper for December delivery added 0.28% to trade at USD3.367 a pound.
Gains were limited however by ongoing speculation over the timing of the Federal Reserve’s widely-expected reduction in monthly bond purchases.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,320.70 a troy ounce during European afternoon hours, up 0.34%.
The December contract ended 0.8% lower on Tuesday to settle at USD1,316.30 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, the low from September 18 and resistance at USD1,366.50, the high from September 20.
Gold prices rallied after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.
Fed Chairman Ben Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course."
Confusion over the future direction of U.S. monetary policy persisted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking on Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
However, Dudley’s comments contrasted with remarks from St. Louis Fed President James Bullard made late last week, who said that a small tapering of bond purchases is still “possible” at the Fed’s October meeting.
The Fed will hold its next monetary policy meeting on Oct. 29-30.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
Elsewhere on the Comex, silver for December delivery rose 0.23% to trade at USD21.633 a troy ounce, while copper for December delivery added 0.28% to trade at USD3.367 a pound.