Investing.com - Gold prices fluctuated between small gains and
losses on Tuesday as investors continue to bet the Federal Reserve
will conclude a monetary policy meeting on Wednesday by announcing
further cuts to its USD75 billion monthly bond-buying stimulus
On the Comex division of the New York Mercantile Exchange, gold
futures for April delivery traded up 0.14% at USD1,256.60 a troy
ounce during Asian trading.
On Monday gold futures traded in the range of 1254.70 and
1,256.80. The April contract settled at USD1,254.90 on Monday.
Futures were likely to find support at USD1,231.30 a troy ounce,
Thursday's low, and resistance at USD1,279.20, the earlier
The Federal Reserve will conclude a monetary policy meeting on
Wednesday, and investors held firm on expectations that monetary
authorities will make fresh cuts to its USD75 billion in monthly
bond purchases due to several months of improving economic
Stimulus tools such as Fed purchases of Treasury holdings and
mortgage debt suppress interest rates to spur recovery, thus
weakening the dollar as long as they remain in effect and making
gold an attractive hedge.
Soft U.S. housing data cushioned gold's losses by reminding
investors that the Federal Reserve will taper bond purchases very
The Census Bureau reported earlier that sales of new,
single-family houses in December came in at a seasonally adjusted
annual rate of 414,000, missing market calls for a 475,000 reading
and also below November's revised figure of 445,000, which softened
the dollar slightly.
The figure was still well above the December 2012 reading of
396,000, and the data also revealed that inventories remain lean
and prices continue rising, which muted the report's impacts on
both gold and the dollar. which tend to trade inversely with one
Meanwhile, silver for March delivery was up 0.43% and trading at
USD19.690 a troy ounce, while copper futures for March delivery
were up 0.05% and trading at USD3.256 a pound.
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