(Reuters) – Gold rose on Wednesday, breaking a four-day fall streak, after U.S. Federal Reserve officials gave mixed signals on the timing for rolling back the QE programme and monetary stimulus, plus the dollar stabilized.
Atlanta Fed President, Dennis Lockhart, did not rule out a tapering of the QE programme at the Dec. 17-18 meeting, though he added the Fed should hold policy very simple.
Spot gold profited 0.7% to $1,276.16 an ounce by 10:55 GMT. It was still not far from a four-week low on Tuesday, when it fell as much as 1.7 % to $1,260.89, the lowest since Oct. 15.
Fed President nominee Janet Yellen should comment at her Senate confirmation hearing on Thursday.
Societe Generale analyst Robin Bhar said, Investors are evaluating to consider the note of the Fed speakers to forecast if that is bullion-friendly or not.
Comex gold futures for December were up by $4.50 to $1,279.10 an ounce.
Technically, the metal examines support at the $1,260 per ounce level, while upside resistance stands between the $1,277-$1,281 area.
The dollar moved a little against a basket of currencies, while 10-year U.S. bond yields stood flat at 2.76%, having risen nearly 20 points since the payroll facts and figures released last Friday.
The timing of any tapering of the Fed’s $85 billion in monthly bond purchases has been a key component affecting gold prices this year. The yellow metal has lost a fifth of its worth so far after the central bank indicated it would start revolving back its stimulus before year-end.
Gold’s fall below $1,300 has failed to attract buyers in Asia as customers expect charges to dwindle further, analysts said.
VTB Capital said that bullion trading has been feeble for the time being, as physical purchasers from Asia prefer to wait for lower cost of gold to enter the market. They added delay for the Chinese cyclic buying to choose up ahead of the Lunar New Year festive.
Dealers said physical demand had failed to pick up due to weaker local currencies in Asia.