CHICAGO, Oct. 22 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly Monday, as recent losses and a lower dollar on the session drew in bargain hunters, and the precious metal retained some underlying support ahead of the Federal Reserve meeting this week.
The most active gold contract for December delivery edged up 2. 3 dollars, or 0.13 percent, to settle at 1,726.3 dollars per ounce.
After losing almost 30 dollars over the previous two trading sessions, gold reversed course and settled slightly higher Monday, as recent lower prices appealed to some bargain hunters.
Although both the U.S. stock market and crude oil were in the negative territory, the session also saw a lower dollar during morning trading. The weaker greenback supported gold, as it makes commodities less expensive for holders of other currencies.
Despite recent declines in the gold market, many analysts feel the precious metal retains a strong momentum due to the quantitative easing policies announced last quarter by many central banks. New economic stimulus measures are positive for gold, as the precious metal traditionally rises on fears of inflation.
The U.S. Federal Reserve Bank will meet for a two-day policy meeting on Tuesday, with gold traders particularly eyeing a new Fed policy statement scheduled to be released Wednesday afternoon. During its last meeting, the U.S. central bank announced it would implement a third round of bound buying, and traders are keen to see where the Fed is heading now after the QE3 decision.
Silver for December delivery rose 15.5 cents, or 0.48 percent, to close at 32.252 dollars per ounce.