Investing.com – Gold futures moved slightly higher in Asian trade Thursday, as investors await the outcome of the weekend summit of European finance officials, and the Federal Reserve reported modest growth for the U.S. economy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,644.95 a troy ounce during early Asian trade, edging up 0.09%, after hitting a low of USDS1,638.35.
In its Beige Book survey released Tuesday, the Fed said, “Overall economic activity continued to expand in September, although many districts described the pace of growth as modest or slight. Contacts generally noted weaker or less certain outlooks for business conditions,” the report said.
Meanwhile, French President Nicolas Sarkozy was scheduled to fly to Frankfurt for a meeting with German Chancellor Angela Merkel, International Monetary Fund head Christine Lagarde and other officials ahead of the summit of euro-zone leaders on Sunday.
European finance officials continue to debate details of a plan to boost the strength of the European Financial Stability Facility, the regional rescue fund for debt threatened euro-zone nations.
Earlier Wednesday, the U.S. Bureau of Labor Statistics reported that the core consumer price inflation index rose less than expected last month, up 0.1% in September from 0.2% in August, the smallest increase since March.
Economists had forecast the index to rise by 0.2% during the period.
Global financial service provider Barclays said in a report that, “We continue to expect gold prices to be cushioned amid the seasonally strong period for physical demand, which remains key before investment demand returns to the driver’s seat.”
A lower dollar helped support gold futures, as a weaker greenback makes gold futures purchases less expensive for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.05% to 77.37.
On the Comex, silver for December delivery gained 0.43% to trade at USD31.18 a troy ounce, while copper for December delivery advanced 0.46% to trade at USD3.231 a pound.