Investing.com - Gold futures were little changed during European morning hours on Wednesday, holding near a one-month high ahead of a U.S. vote on raising the nation's borrowing limit.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,691.05 a troy ounce during European morning trade, down 0.15% on the day.
Prices held in a tight range between USD1,690.95 a troy ounce, the daily low and a session high of USD1,694.75 a troy ounce. Prices touched a one-month high of USD1,696.25 a troy ounce on January 17.
Gold prices were likely to find support at USD1,647.05 a troy ounce, the low from January 8 and near-term resistance at USD1,704.35,the high of December 18.
Gold traders continued to monitor political developments in the U.S., amid ongoing uncertainty over how the country will tackle the upcoming USD16.4 trillion debt ceiling debate.
Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit, allowing the government to borrow enough to meet its obligations during that period.
Failing to raise the debt ceiling by the end of February could lead to a first-ever U.S. default that could roil financial markets.
From a technical standpoint, gold prices face strong resistance at the key psychological level of USD1,700 an ounce. Market analysts have warned that a failure to break higher would signal a move back towards the USD1,650-level.
Elsewhere on the Comex, silver for March delivery eased down 0.15% to trade at USD32.13 a troy ounce, while copper for March delivery dipped 0.15% to trade at USD3.699 a pound.
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