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Gold holds above $1,300 ahead of Fed meeting

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Investing.com -

Investing.com - Gold futures edged higher in range-bound trade on Tuesday, as investors remained cautious ahead of the Federal Reserve's two-day policy meeting due to begin later in the day.

On the Comex division of the New York Mercantile Exchange, gold for December delivery inched up 0.27%, or $3.50, to trade at $1,309.30 a troy ounce during European morning hours. Prices held in a tight range between $1,305.90 and $1,309.50.

Gold ended Monday's session up 0.04%, or 50 cents, to settle at $1,305.80 an ounce. Futures were likely to find support at $1,287.50, the low from July 24 and resistance at $1,320.40, the high from July 21.

Traders looked ahead to the Fed's monetary policy statement due on Wednesday. The central bank is likely to stick to its timetable to trim its monthly bond purchases by another $10 billion to a total of $25 billion a month.

Meanwhile, Wednesday's preliminary estimate on second quarter economic growth and Friday's U.S. jobs report for July were both expected to indicate that the economic recovery is continuing.

Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.

Gold remained supported as tensions between Russia and the West over the situation in Ukraine remained high, while fighting between Israel and Hamas militants in Gaza also remained in focus.

The precious metal is often seen as a haven investment in times of geopolitical uncertainty.

Also on the Comex, silver for September delivery tacked on 0.44%, or 9.1 cents, to trade at $20.65 a troy ounce.

Elsewhere in metals trading, copper for September delivery picked up 0.18%, or 0.6 cents, to trade at $3.250 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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