LOS ANGELES (MarketWatch) — Gold futures moved nominally higher on Monday, keeping in a tight range as traders positioned themselves ahead of this week's Federal Reserve meeting and what it could mean for the central bank's bond-buying program.
Gold for February delivery (GCG4) tacked on $1.10 to $1,235.70 an ounce, while March silver (SIH4) gave up a penny to $19.59 an ounce.
AFP/Getty Images Gold prices closed Friday's session with a 0.5% gain for the week. The precious metal took a big hit on Thursday, as a budget deal was seen as the latest evidence pointing to the likely onset of a tapering of the Federal Reserve's stimulus when the central bank meets this week.
Still, trader Simple Sahni of Heraeus Metals remains bullish about the next few days.
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"We expect to see a continuation of short covering in the markets until the Fed meets ... which is when investors will re-evaluate their positions," he said.
"The strong retail figures... increase the likelihood that the Fed can begin tapering at its next meeting, however market consensus is that a reduction in monetary stimulus will be seen in March 2014," Sahni said, referring to U.S. retail-sales data released last week.
Elsewhere in metals trading, January platinum (PLF4) was down $3.50, or 0.3%, to $1,359.40 an ounce, while March palladium (PAH4) added 75 cents, or 0.1%, to $717.50 an ounce.
High-grade copper for March delivery (HGH4) lost a penny, or 0.3%, to $3.31 a pound.
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