Investing.com - Gold futures rose for the first time in four days on Wednesday, as investors returned to the market to seek cheap valuations in wake of recent losses.
Gains were likely to be limited amid ongoing speculation over the timing of the Federal Reserve’s widely-expected reduction in monthly bond purchases.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,326.80 a troy ounce during European morning hours, up 0.8%.
Gold prices rose by as much as 1.1% earlier in the session to hit a daily high of USD1,329.90 a troy ounce. The December contract ended 0.8% lower on Tuesday to settle at USD1,316.30 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, the low from September 18 and resistance at USD1,366.50, the high from September 20.
Confusion over the future direction of U.S. monetary policy persisted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking on Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
However, Dudley’s comments contrasted with remarks from St. Louis Fed President James Bullard made late last week, who said that a small tapering of bond purchases is still “possible” at the Fed’s October meeting.
The Fed will hold its next monetary policy meeting on Oct. 29-30.
Gold prices soared by as much as 4.5% on September 18 after the Fed decided to leave its USD85 billion-a-month stimulus program unchanged.
The decision surprised markets, which had been expecting the central bank to taper its monthly stimulus program by USD10 billion to USD15 billion.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of nearly 22% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery rallied 1.05% to trade at USD21.81 a troy ounce, while copper for December delivery inched up 0.1% to trade at USD3.266 a pound.
Gains were likely to be limited amid ongoing speculation over the timing of the Federal Reserve’s widely-expected reduction in monthly bond purchases.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,326.80 a troy ounce during European morning hours, up 0.8%.
Gold prices rose by as much as 1.1% earlier in the session to hit a daily high of USD1,329.90 a troy ounce. The December contract ended 0.8% lower on Tuesday to settle at USD1,316.30 a troy ounce.
Gold futures were likely to find support at USD1,291.70 a troy ounce, the low from September 18 and resistance at USD1,366.50, the high from September 20.
Confusion over the future direction of U.S. monetary policy persisted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking on Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
However, Dudley’s comments contrasted with remarks from St. Louis Fed President James Bullard made late last week, who said that a small tapering of bond purchases is still “possible” at the Fed’s October meeting.
The Fed will hold its next monetary policy meeting on Oct. 29-30.
Gold prices soared by as much as 4.5% on September 18 after the Fed decided to leave its USD85 billion-a-month stimulus program unchanged.
The decision surprised markets, which had been expecting the central bank to taper its monthly stimulus program by USD10 billion to USD15 billion.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of nearly 22% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery rallied 1.05% to trade at USD21.81 a troy ounce, while copper for December delivery inched up 0.1% to trade at USD3.266 a pound.