Investing.com - Gold prices rose on Monday after stocks posted modest gains in afternoon Wall Street trading, enticing investors to take up nicely priced positions in the yellow metal.
Talk that physical demand is on the rise in China pushed up prices as well.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.88% at USD1,660.85 a troy ounce in U.S. trading, up from a session low of USD1,646.85 and down from a high of USD1,662.55 a troy ounce.
Gold futures were likely to test support USD1,643.25 a troy ounce, Monday's low, and resistance at USD1,695.35, Wednesday's high.
Stocks rose on Tuesday and took gold prices up with them, especially after uncertainty as to when the Federal Reserve may consider winding down its USD85 million monthly bond-buying program sent the precious metal falling in recent sessions.
The minutes of the Federal Reserve's December monetary policy meeting released recently revealed that most board members are debating when to wind down stimulus measures, leaving markets to conclude that monetary authorities may be soon grow concerned about inflationary pressures mounting in the U.S., a key ingredient to rising gold prices.
Gold prices have soared in recent years amid repeated attempts at teh Federal Reserve to stimulate the U.S. economy, which have weakened the dollar in the process.
Talk that China is making fresh purchases of physical gold hiked up prices as well.
Meanwhile on the Comex, silver for March delivery was up 1.21% and trading at USD30.445 a troy ounce, while copper for March delivery was down 0.09% and trading at USD3.675 a pound.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
