Gold futures pared a substantial portion of intraday gains, but still managed to end Tuesday’s session at a two-week high.
The front-month gold futures contract briefly slipped into the red as the dollar pared its losses, but eventually managed to close marginally higher.
The dollar lost ground after a weak start with traders looking ahead to the Federal Reserve’s monetary policy announcement on Wednesday. However, after falling to a low of 92.79 in the Asian session, the dollar index gradually recovered and was last seen at 93.12, up 0.07% from previous close.
The dollar’s recovery resulted in gold losing some sheen.
Gold futures for December ended up $2.50 or about 0.1% at $1,966.20 an ounce, well off the session’s high of $1,982.40 an ounce.
Silver futures for December closed higher by $0.109 at $27.464 an ounce, while Copper futures for December settled at $3.0630 per pound, down $0.0050 from previous session.
Traders looked ahead to the Federal Reserve’s monetary policy announcement, due on Wednesday. The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to any tweaks to the accompanying statement. The central bank’s latest economic projections may also attract attention.
In economic news today, a report from the Fed showed growth in U.S. industrial production slowed by much more than expected in the month of August, climbing just 0.4% as against expectations for a jump of 1%. In July, industrial production rose by an upwardly revised 3.5%.
Although production increased for the fourth consecutive month, it remains 7.3% below its pre-pandemic February level.
A separate report from the Labor Department showed another notable increase in U.S. import prices in the month of August, with prices jumping by more than expected.