MTECHTIPS Gold futures push higher on hopes for dovish Fed

MTECHTIPS Gold futures push higher on hopes for dovish Fed

Gold futures edged higher in Europe trade on Monday, as investors looked ahead to this week’s Federal Reserve policy statement for any indication that the bank is considering slowing the path of interest rate increases this year. Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $8.50, or 0.78%, to trade at $1,104.80 a troy ounce by 9:00GMT, or 4:00AM ET. Gold prices rose $7.40, or 0.52%, last week. Prices of the precious metal are up 4% so far this year as investors sought refuge from turmoil in global equity markets. The Federal Reserve is not expected to take action on interest rates at the conclusion of its two day policy meeting at 19:00GMT, or 2:00PM ET, on Wednesday, but it will be watched for any change in tone about the economy or future rate hikes. Many in the market anticipate the pace of future increases to be gradual amid concerns over tepid growth overseas and indications that U.S. economic growth stalled in the fourth quarter. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases. Market participants will also be looking to Friday’s data on U.S. fourth quarter gross domestic product, which is expected to show that growth slowed to a modest 0.8% from 2.0% in the third quarter. Also on the Comex, silver futures for March delivery inched up 3.8 cents, or 0.27%, to trade at $14.09 a troy ounce during morning hours in London. Elsewhere in metals trading, copper fell from the prior session’s two-week high as ongoing worries over global economic growth weighed. Copper is down nearly 6% so far this year as investors slashed holdings of the red metal amid persistent worries over an economic slowdown in China. The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.