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Gold prices steady to weaker in Asia with focus on Fed policies

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Investing.com -

Investing.com - Gold prices held steady to weaker in early Asia on Tuesday as investors focus on U.S. monetary policy prospects that seem favorable for eventual higher interest rates.

Investors are watching an annual meeting of top central bank officials and economists in Jackson Hole, Wyoming from August 21 to 23.

The spotlight will be on Fed Chair Janet Yellen, who will speak on Friday in her first appearance at Jackson Hole as head of the U.S. central bank.

Gold traders will also pay close attention to the minutes of the Fed's July policy meeting due to be published on Wednesday for further clues about the timing of future interest rate hikes.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,299.00 a troy ounce, down 0.02%, after hitting an overnight session low of $1,296.70 and off a high of $1,304.80.

Overnight, gold prices moved lower after upbeat U.S. data and waning Ukraine fears chipped away at the precious metal's appeal as a hedge to uncertainty.

Russian and Ukraine foreign ministers held talks earlier and while no resolution to end the conflict emerged, the flow of humanitarian aid deliveries into Ukraine from Russia continued, which calmed nerves in global markets.

Upbeat U.S. data also weakened the commodity by keeping expectations firm that the Federal Reserve remains on track to end its stimulus bond-buying program around October and raise interest rates some time in 2015.

The National Association of Home Builders/Wells Fargo Housing Market Index increased to 55.0 in August, a seven-month high, from 53.0 in July, beating estimates for a reading of 53.0.

A level above 50.0 indicates a favorable outlook on home sales and below indicates a negative outlook.

"As the employment picture brightens, builders are seeing a noticeable increase in the number of serious buyers entering the market," said NAHB Chairman Kevin Kelly.

Silver for September delivery was down 0.15% at $19.605 a troy ounce. Copper futures for September delivery were flat at $3.111 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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