Investing.com - Gold futures traded lower in holiday-thinned trade Wednesday, as traders focused on monetary policy decisions from the European Central Bank and the Bank of England on Thursday.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,614.45 a troy ounce during U.S. morning trade, giving back 0.45%.
The August contract traded in between a tight range of USD1,620.65 a troy ounce, the daily high and a session low of USD1,612.05 a troy ounce. Prices hit USD1,625.65 a troy ounce on Tuesday, the highest since June 19.
Gold futures were likely to find support at USD1,551.35 a troy ounce, the low from June 29 and near-term resistance at USD1,634.25, the high from June 19.
Trade volumes were expected to remain light on Wednesday, with COMEX floor trading and U.S. equity markets closed for the Independence Day holiday.
Sentiment on the precious metal continued to be supported by hopes for a fresh stimulus measures by policy makers in the euro zone and the U.S.
The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
The Bank of England is also set to update markets on its policy on Thursday, amid hopes the central bank could increase the size of its government bond-buying program.
Gold traders were also eyeing Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Market players are also hoping for further easing measures from Beijing to boost growth in China, the world’s second largest economy.
The Shanghai Securities News reported earlier that China may cut lenders’ reserve requirements three more times during 2012, by 0.5% each time, citing a banking sector development report released by the China Banking Association.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
Elsewhere on the Comex, silver for September delivery declined 0.60% to trade at USD28.10 a troy ounce, while copper for September delivery fell 0.80% to trade at USD3.510 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,614.45 a troy ounce during U.S. morning trade, giving back 0.45%.
The August contract traded in between a tight range of USD1,620.65 a troy ounce, the daily high and a session low of USD1,612.05 a troy ounce. Prices hit USD1,625.65 a troy ounce on Tuesday, the highest since June 19.
Gold futures were likely to find support at USD1,551.35 a troy ounce, the low from June 29 and near-term resistance at USD1,634.25, the high from June 19.
Trade volumes were expected to remain light on Wednesday, with COMEX floor trading and U.S. equity markets closed for the Independence Day holiday.
Sentiment on the precious metal continued to be supported by hopes for a fresh stimulus measures by policy makers in the euro zone and the U.S.
The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
The Bank of England is also set to update markets on its policy on Thursday, amid hopes the central bank could increase the size of its government bond-buying program.
Gold traders were also eyeing Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Market players are also hoping for further easing measures from Beijing to boost growth in China, the world’s second largest economy.
The Shanghai Securities News reported earlier that China may cut lenders’ reserve requirements three more times during 2012, by 0.5% each time, citing a banking sector development report released by the China Banking Association.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
Elsewhere on the Comex, silver for September delivery declined 0.60% to trade at USD28.10 a troy ounce, while copper for September delivery fell 0.80% to trade at USD3.510 a pound.