Investing.com - Gold prices shot up on Tuesday after investors dismissed market murmurings that the Federal Reserve may decide to taper the pace of its monthly bond purchases at its Dec. 17-18 monetary policy meeting due to Friday's better-than-expected November jobs report.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,260.20 during U.S. afternoon hours, up 2.11%.
Gold prices hit a session low of USD1,237.40 a troy ounce and high of USD1,267.30 a troy ounce.
Gold futures were likely to find support at USD1,224.80 a troy ounce, Monday's low, and resistance at USD1,293.60, the high from Nov. 14.
The February contract settled up 0.42% at USD1,234.20 a troy ounce on Monday.
Gold prices fell in recent sessions after the U.S. Labor Department reported on Friday that the economy picked up 203,000 jobs in November, beating expectations for a 180,000 increase and up from a downwardly revised 200,000 rise the previous month.
Also on Friday, data revealed the preliminary Thomson Reuters/University of Michigan consumer sentiment index increased to 82.5 in December from 75.1 the previous month, far surpassing expectations for a 76.0 reading.
Both reports sparked talk that the Federal Reserve may begin scaling back its USD85 billion in monthly bond purchases possibly this month.
Bond purchases have supported gold prices for over a year by weakening the dollar, which trades inversely with the yellow metal.
By Tuesday, investors traded on expectations that the Fed remains on course to considering tapering in early 2014, which gave gold prices room to rise.
Elsewhere on the Comex, silver for March delivery was up 3.23% at USD20.337 a troy ounce, while copper for March delivery was up 0.24% and trading at USD3.266 a pound.
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