Gold futures prices higher in the given range trade on Tuesday, since investors remained cautious ahead of the two-day Federal Reserve policy meeting will begin at end of day.
Spot gold was little changed just above $ 1,300 an ounce today, with the support of geopolitical tensions in the Middle East and Ukraine, with investors also focusing on employment data from the United States.
The Federal Reserve begins its two-day meeting later Tuesday, with market watching for clues as to when the central bank of the United States start to increase interest rates markets. The Fed on Wednesday draw up a declaration at the end of the meeting.
Spot gold remained stable in $ 1,303.70 an ounce, after dropping by 0.3 percent in the previous session.
The US Exchange, gold December futures rose 0.27%, or $ 3.50, to trade at $ 1309.30 a troy ounce during European morning hours. Prices took place in a narrow range between $ 1305.90 and $ 1309.50.
Gold ended Monday’s session up 0.04%, or 50 cents, to settle at $ 1305.80 an ounce.
Last week, gold decreased 1% back under US $ 1,300 an ounce whereas silver stuck to his’ leveraged gold’tendency declining 2.3%, but still above the level $20/ Oz more seen ETF Securities Ltd (ETFs), said in a weekly report.
ETFS report further stated that China’s gold demand downhill by 19% in the first semester of 2014 also weighed on market sentiments.
Traders were looking forward to the policy statement by the Fed on Wednesday. The central bank is likely to stick to its timetable to cut its monthly bond purchases another $ 10 billion to a total of $ 25 billion a month.
Meanwhile, flash estimate Wednesday for economic growth and second trimester of Friday The US July jobs report is expected to denote both that an economic recovery continues.
Earlier this month Fed President Janet Yellen said rates could rise sooner if retrieval in the labor market remained.
Notes of robust economic recovery could result in the Fed to raise rates sooner than expected. The highest rates could stimulate investors to cash withdrawals from not accruing interests assets such as gold.
Bullion, viewed as a safe haven asset, have benefited from the tensions between the West and Russia. The US and European leaders agreed on Monday to impose broader sanctions in the financial, defense and energy from Russia.
In physical markets, demand underwent as buyers were waiting on the sidelines for a possible price drop.