Gold prices inched lower in rangebound trade on Wednesday, as investors cashed out of the market to lock in gains from the previous session’s sharp rally which took prices to a three-week high.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,256.60 a troy ounce during European morning trade, down 0.35%. Comex gold prices held in a tight range between USD1,256.10 a troy ounce and USD1,262.70 a troy ounce.
The February contract rallied to USD1,267.50 a troy ounce on Tuesday, the highest since November 20, before settling at USDUSD1,261.10 a troy ounce, up 2.18%.
Gold futures were likely to find support at USD1,237.40 a troy ounce, the low from December 10 and resistance at USD1,275.70, the high from November 20.
Gold prices rallied on Tuesday as the U.S. dollar was weighed by doubts over whether the Federal Reserve will start to reduce stimulus measures at next week’s policy meeting.
The central bank is scheduled to meet December 17-18 to review the economy and assess monetary policy.
Gold is down approximately 26% this year, heading for the first annual loss in 13 years, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, silver for March delivery shed 0.25% to trade at USD20.26 a troy ounce. On Tuesday, Comex silver prices jumped to USD20.43 a troy ounce, the highest level since November 20, before settling at USD20.31, up 3.12%.
Meanwhile, copper for March delivery was little changed to trade at USD3.268 a pound.
Copper traders awaited updates from China’s annual Central Economic Work Conference, which began on Tuesday, where policymakers will set economic growth targets and policy priorities for 2014.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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