Gold edges higher with Fed rate outlook in focus
San Francisco (Oct 20) Gold futures edged higher on Monday, as investors continued to speculate over the timing of a rate hike in the U.S.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,241.80 a troy ounce during European morning hours, up $2.80, or 0.23%.
Futures were likely to find support at $1,222.00, the low from October 15, and resistance at $1,250.30, the high from October 15.
Comex gold prices rose $17.30, or 1.39%, last week, the second consecutive weekly gain.
Gold prices remained supported amid speculation weaker than expected global economic growth and its effect on the U.S. economy may lead the Federal Reserve to push back interest-rate increases.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Also on the Comex, silver for December delivery picked up 4.6 cents, or 0.27%, to trade at $17.37 a troy ounce.
Elsewhere in metals trading, copper for December delivery lost 0.9 cents, or 0.3%, to trade at $2.995 a pound.
Market participants looked ahead to a raft of Chinese economic data due on Tuesday for further indications on the strength of the economy and the future path of monetary policy.
The Asian nation will release data on third quarter gross domestic product, as well as reports on industrial production, retail sales and fixed-asset investment for September.
Market analysts expect China's economy to grow 7.2% in the three months ending September 30, down from growth of 7.5% in the preceding quarter.
Recent economic data from the Asian nation has indicated that the recovery remains fragile and may require further monetary stimulus.
China's central bank signaled plans on Friday to inject as much as 200 billion yuan in short-term loans to the nation's banks in order to spur lending activity and boost growth.
Copper traders also looked ahead to the outcome of a four-day meeting of China's top Communist Party officials on Thursday, known as the 4th Plenum, amid expectations that policymakers will unveil economic reforms.
China is the world's largest copper consumer, accounting for almost 40% of world consumption.
Source: MoneyControl
