Investing.com - Gold futures were little changed on Wednesday, as investors awaited an upcoming European Central Bank policy meeting on Thursday, amid expectations that the bank would leave rates unchanged.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,662.65 a troy ounce during European morning trade, inching up 0.03% on the day.
Prices held in tight trading range between USD1,657.55 a troy ounce, the daily low and a session high of USD1,663.85 a troy ounce. Gold futures fell to USD1,626.05 a troy ounce on January 4, the lowest level since August 21.
Gold prices were likely to find support at USD1,626.05 a troy ounce, the low from January 4 and resistance at USD1,680.95,the high of December 30.
Investors adopted a wait-and-see approach ahead of Thursday's ECB policy setting meeting. The ECB was widely expected to hold off cutting rates, but some market participants expected the bank to flag the possibility of rate cuts later in the year.
Overall market sentiment also remained cautious amid the ongoing U.S. debate about raising the debt ceiling.
Gold futures hit four-month lows last week after the minutes from the Federal Reserve's December meeting indicated that the central bank could end its quantitative easing program earlier-than-expected.
The Fed's quantitative easing program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
Elsewhere on the Comex, silver for March delivery added 0.21% to trade at USD30.52 a troy ounce, while copper for March delivery was up 0.28% to USD3.682 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.
