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Gold inches higher, Fed minutes awaited

Published 08/20/2012, 03:38 AM
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Investing.com - Gold futures edged higher in subdued trade on Monday, supported by hopes for further central bank stimulus to spur the global economic recovery, but gains looked likely to remain limited ahead of Federal Reserve minutes later in the week.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,618.65 a troy ounce during European morning trade, inching up 0.08%.     

Gold futures were likely to test support at USD1,611.85 a troy ounce, the low from Aug. 17, and resistance at USD1,620.05, the high from Aug. 17.

Investors were looking ahead to the minutes of the Fed’s August policy meeting amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.

Data on Friday showed that U.S. consumer sentiment rose to its highest level in three months in August, while the Conference Board reported that its index of leading U.S. indicators rose more-than-expected in July.

The data came after better-than-expected U.S. retail sales and industrial production data early last week indicated that the economy may be stabilizing and tempered expectations for another round of quantitative easing by the Fed.

Overall market sentiment improved ahead of a series of euro zone meetings this week to discuss measures to stem the region’s debt crisis.

Over the weekend, German magazine Der Spiegel reported that the European Central Bank may set limits on yields of euro-area sovereign debt by pledging unlimited bond purchases at the bank’s next policy meeting in September.

Elsewhere on the Comex, silver for September delivery was up 0.45% and trading at USD28.127 a troy ounce, while copper for September delivery was down 0.53% and trading at USD3.401 a pound.


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