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Gold modestly lower ahead of FOMC minutes

Published 05/21/2014, 03:54 AM
Gold eases down ahead of Fed minutes
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Investing.com - Gold prices edged lower on Wednesday, as investors looked ahead to Federal Reserve minutes later in the trading day.

On the Comex division of the New York Mercantile Exchange, gold for June delivery dipped 0.12%, or $1.60, to trade at $1,293.00 a troy ounce during European morning hours.

Prices held in a tight range between $1,292.30 and $1,296.40 an ounce. Gold eased up 0.06%, or 80 cents, on Tuesday to settle at $1,294.60 an ounce.

Gold prices were likely to find support at $1,286.00 an ounce, the low from May 20 and resistance at $1,305.70, the high from May 19.

Market players looked ahead to the release of the minutes from the Fed's latest monetary policy meeting later in the day for insight on the central bank's view of the economy.

On Tuesday, Philadelphia Federal Reserve Bank President Charles Plosser said that the Fed should consider winding down its monthly bond-purchasing program quicker than its current pace to ensure than inflationary pressures remain in comfort zones, while rate hikes should follow soon afterwards.

Separately, William Dudley, head of the New York Fed, said rates will rise after the Fed winds down stimulus programs, though hikes will come gradually.

Meanwhile, ongoing tensions between Russia and Ukraine remained in focus. Ukraine will hold presidential elections on May 25, and concerns persist that Russia will meddle in the voting and escalate the crisis.

U.S. and European officials have already warned that Russia would face additional sanctions if Moscow disrupts the upcoming elections.

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Elsewhere in metals trading, silver for July delivery inched up 0.21%, or 4.1 cents, to trade at $19.44 a troy ounce, while copper for July delivery declined 0.65%, or 2.0 cents, to trade at $3.125 a pound.

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