Bullion prices nudged higher on Tuesday, 28 October 2014 at Comex as investors prepare for life after the Federal Reserve's bond-buying stimulus program ends. Gold prices ended the U.S. day session steady to modestly higher on Tuesday. The Fed is expected to announce the end of that program following the end of its two-day meeting on Wednesday.
Gold for December delivery edged up 10 cents to settle at $1,229.40 an ounce. Gold had fallen for two straight sessions after showing signs of life last week.
December silver added 6 cents to $17.23 an ounce.
Gold prices got a pop on Tuesday morning when downbeat U.S. durable goods data came out. Durables orders fell by 1.3% in September versus expectations for a rise of around 0.5%. The price gains could not be held, however, as prices drifted lower through the session.
Focus of the market place is on the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve's regular meeting that began on Tuesday morning and ends Wednesday afternoon. As usual, the Wednesday afternoon statement from the FOMC will be very closely scrutinized by the market place. Most believe the Fed will formally end its monthly bond-buying program, called quantitative easing. Traders will also be looking for clues in the statement about future direction of monetary policy, including at what point the Fed will start to raise U.S. interest rates.
In overnight news, Sweden's central bank cut its main lending rate to zero percent Tuesday, in an attempt to produce some price inflation. The entire European Union is on the verge of serious price deflation. The European Central Bank has recently stimulated its monetary policy, and more measures are likely coming soon from the ECB.