Gold futures traded slightly higher during Wednesday’s Asian session as traders did some bargain hunting with the yellow metal following a disappointing showing on Tuesday.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose 0.15% to USD1,310.00 per troy ounce in Asian trading Wednesday. The December contract settled lower by 0.50% at USD1,308.10 per ounce on Tuesday.
Gold futures were likely to find support at USD1,305.80 a troy ounce, the earlier low, and resistance at USD1,322.10, Monday's high.
Although it was a slack day for U.S. equities, gold was pressured Tuesday following some economic data out of the world’s largest economy that had some traders thinking tapering of the Federal Reserve’s USD85 billion-per-month bond-buying program is closer than some would hope.
In U.S. economic news out Tuesday, the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 55.4 in October from 54.4 in September, beating forecasts for a 54.0 reading. Readings above 50 indicate expansion.
The dollar got a lift on the news as tapering speculation rose. It is widely expected the dollar will rise when the Fed finally and formally announces it is paring its asset-buying efforts.
Later this week, it is expected the Commerce Department will say the U.S. economy grew 2% in the third quarter following growth of 2.5% in the second quarter. On Friday, the Labor Department delivers the October non-farm payroll report, which will also have gold in focus.
Elsewhere, Comex silver for December delivery rose 0.08% to USD21.653 per ounce while copper for December delivery lost 0.19% to USD3.255 an ounce. - investing.com