Investing.com - Gold prices held steady in afternoon trading on
Wednesday as investors remained on the sidelines ahead of the
Federal Reserve's statement on monetary policy and the fate of its
USD85 billion monthly bond-buying program due out later in the day.
Bond purchases seek to boost recovery by pushing down interest
rates, weakening the dollar in the process and making gold an
On the Comex division of the New York Mercantile Exchange, gold
futures for February delivery traded at USD1,230.60 during U.S.
afternoon hours, up 0.04%.
Gold prices hit a session low of USD1,227.10 a troy ounce and high
of USD1,236.60 a troy ounce.
Gold futures were likely to find near-term support at USD1,227.10 a
troy ounce, the earlier low, and resistance at USD1,251.40,
The February contract settled down 1.15% at USD1,230.10 a troy
ounce on Tuesday.
The Federal Reserve is due to release its December statement on
interest rates and whether or not it will make changes to its USD85
billion in monthly bond purchases.
Investors avoided gold ahead of time, as a decision to taper the
pace of its asset purchases could lead to price swings, while a
decision to punt scaling back the stimulus program could send
Gold prices have fallen in recent sessions as investors priced in
less monetary support from the U.S. central bank, though
uncertainty as to how the precious metal will react to an actual
announcement allowed for quiet but edgy trading.
Investors were eager to digest Fed language in the report as well.
Elsewhere on the Comex, silver for March delivery was up 0.80% at
USD19.998 a troy ounce, while copper for March delivery was down
0.04% and trading at USD3.320 a pound.
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