Benchmark gold futures edged higher during Asian trading hours Tuesday, with investors awaiting a policy decision Wednesday from the U.S. Federal Reserve that could have major implications for gold prices. In electronic trade, gold for August delivery GCQ2 +0.09% rose $3.10, or 0.2%, to $1,622.80 per troy ounce on the Comex division of the New York Mercantile Exchange. The gains built on a four-day winning streak for Comex gold futures, which rose 70 cents Monday, as the markets focused on the upcoming Fed announcement, along with a key European Central Bank meeting Thursday. Read more on Monday's gold trade. HSBC commodities analysts said while gold could shoot higher if the Fed announces fresh easing, a lack of policy moves would likely provide just a temporary drag on prices. “Should the Fed loosen policy, gold could rise on a short-covering rally; conversely, prices could fall should the Fed elect not to ease, but we believe losses would be short-lived," they wrote in a note Monday. “We also detect a gradual shift in investor sentiment in favor of gold. This may be due in part to the approaching U.S. elections and heightened economic uncertainty surrounding U.S. fiscal policy," the HSBC analysts said. Silver tracked gold higher Tuesday, as the September contract SIU2 +0.40% advanced 14 cents, or 0.5%, to $28.18 an ounce. Copper for September delivery HGU2 +0.42% gained 1 cent, or 0.4%, to $3.43 a pound, while September palladium PAU2 +0.31% added $4.20, or 0.7%, to $592.55 an ounce. Platinum for October delivery PLV2 +0.58% added $10.40 or 0.7% to $1,422.20 an ounce. Marketwatch
