Forexpros – Gold futures pushed higher in quiet trade on Wednesday, as investors awaited the outcome of policy decisions by the Federal Reserve and the European Central Bank, which could have major implications for gold prices.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,618.55 a troy ounce during early European trade, up 0.38%.
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.
Gold’s gains were limited as market participants took a backseat ahead of the Fed announcement later in the day, amid speculation over whether the U.S. central bank will indicate if further quantitative easing measures are imminent.
Gold and the dollar trade inversely, and talk the Fed is considering more easing can weaken the greenback and drive investors to buy the precious metal.
Investors were also looking ahead to Thursday’s ECB meeting amid growing concerns that the central bank will disappoint expectations for bold steps to counter the debt crisis in the euro zone.
Expectations have been mounting that the ECB will announce measures to lower Spanish and Italian borrowing costs after the bank’s head Mario Draghi pledged last week to do whatever is necessary to preserve the euro.
Gold was little changed after official data showed that Chinese manufacturing activity slowed to an eight month low in July, as markets remained focused on the central bank policy decisions.
Elsewhere on the Comex, silver for September delivery was up 0.29% to trade at USD27.995 a troy ounce, while copper for September delivery dipped 0.06% to USD3.416 a pound.
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