Forexpros – Gold futures edged lower on Tuesday, as investors anticipated the outcome of the Federal Reserve’s policy meeting on Wednesday, amid speculation over the possibility of more easing from the U.S. central bank.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,621.45 a troy ounce during early European trade, dipping 0.02%.
Gold futures were likely to test support at USD1,610.75 a troy ounce, the low from July 27, and resistance at USD1,628.55, the high from July 17.
Trade remained subdued ahead of the upcoming Fed announcement, which could have major implications for gold prices.
Investors have interpreted signs of slowing U.S. economic growth as increasing the likelihood that the Federal Reserve will implement more stimulus measures to shore up the economic recovery.
Gold and the dollar trade inversely, and talk the Fed is considering more quantitative easing can weaken the greenback and drive investors to buy the precious metal.
Market participants were also looking ahead to Thursday’s European Central Bank policy meeting after the bank’s head Mario Draghi pledged last week to do whatever is necessary to preserve the euro.
The remarks fuelled expectations that the ECB is set to announce fresh policy measures to stem the crisis in the euro zone.
Elsewhere on the Comex, silver for September delivery was up 0.14% to trade at USD28.072 a troy ounce, while copper for September delivery rose 26% to USD3.425 a pound.
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