Gold prices rebounded from early weakness and settled modestly higher on Tuesday, due largely to a drop in treasury yields.
Amid continued uncertainty about a potential trade deal between the U.S. and China, traders were looking ahead to the minutes of the U.S. Federal Reserve’s latest monetary policy meeting.
Gold futures for December ended up $2.40, or about 0.2%, at $1,474.30 an ounce.
On Monday, gold futures for December ended up $3.40, or about 0.2%, at $1,471.90 an ounce, recovering from a low of $1,456.60.
Silver futures for December ended up $0.118, or 0.7%, at $17.118 an ounce, while Copper futures for December settled at $2.6565 per pound, gaining $0.0365, or 1.4%, for the session.
Investors are looking ahead to the minutes of the Federal Reserve’s October policy meeting for clues about futures interest rate moves by the central bank.
New York Federal Reserve President John Williams said today that the economy is facing several challenges. However, he said the recent rate cuts should help sustain growth.
In U.S. economic release today, a report from the Commerce Department showed a substantial rebound in new residential construction in the month of October.
The Commerce Department said housing starts surged up by 3.8% to an annual rate of 1.314 million in October after plunging by 7.9% to a revised rate of 1.266 million in September.
Economists had expected housing starts to jump by 5.1% to a rate of 1.320 million from the 1.256 million originally reported for the previous month.
The report also said building permits spiked by 5% to an annual rate of 1.461 million in October after tumbling by 2.4% to a revised rate of 1.391 million in September.
Economists had expected Building permits to edge down by 0.1% to a rate of 1.385 million from the 1.387 million originally reported for the previous month.
The material has been provided by InstaForex Company – www.instaforex.com