De goudprijs en het Duitse gerechtshof.......
Gold futures traded just below a six-month high during European morning hours on Wednesday, as investors looked ahead to a key as investors looked ahead to a key German Constitutional Court ruling later in the day.
Investors were also focusing on the Federal Reserve’s two-day policy-setting meeting, which begins later Wednesday, for more clarity on the central bank’s monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,735.85 a troy ounce during European morning trade, adding 0.2%.
Prices were stuck in a tight trading range of USD1,732.55 a troy ounce, the daily low and a session high of USD1,737.55 a troy ounce. Gold futures rallied to USD1,741.95 a troy ounce last Friday, the highest since February 29.
Gold prices were likely to find support at USD1,685.35 a troy ounce, the low from September 3 and near-term resistance at USD1,741.95.
Market players awaited a key German court ruling later Wednesday on whether the euro zone's permanent bailout fund, the European Stability Mechanism, is compatible with German law.
Germany’s approval will be necessary in order to implement the European Central Bank’s bond purchasing program announced last week, dubbed Outright Monetary Transactions.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost growth.
Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report and following a speech from Fed Chief Ben Bernanke at Jackson Hole last month.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Gold prices have rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation.
The precious metal received an additional lift from a weaker U.S. dollar. Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
The greenback took a hit after ratings agency Moody’s warned Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
Elsewhere on the Comex, silver for December delivery rose 0.3% to trade at USD33.65 a troy ounce, while copper for December delivery shed 0.1% to trade at USD3.693 a pound.