Gold futures rebounded sharply in the previous session on Wednesday as investors returned to the market in search of cheap valuations when prices fell to a minimum of four weeks. 

The gains were likely to be limited due to ongoing speculation the Federal Reserve will start to reduce the purchase of assets in its policy meeting on December program. 

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD 1,277.00 troy ounce during U.S. morning trade, up 0.45%. 

COMEX Gold prices traded in a range between USD 1,265.10 a troy ounce, the lowest of the day and a session high of USD 1,278.50 a troy ounce. 

December contract dropped to USD 1,260.50 a troy ounce on Tuesday, the lowest since Oct. 15, before settling at USD 1,271.20, down 0.77%. 

Gold futures were likely to find support at USD 1,251.10 a troy ounce, from October 15 and resistance at USD 1,287.70, the high of November 11. 

Investors are focusing on the Senate hearing on Thursday to confirm Janet Yellen as the first president of the Federal Reserve on the future direction of U.S. monetary policy. 

Speculation that the Fed may begin gradually reducing its asset purchase program USD85 billion per month starting next month mounted after official data last week showed that the U.S. economy created 204,000 jobs in October, more than the 125,000 gain expected by economists. 

Atlanta President Dennis Lockhart Federal Reserve said on Tuesday that the central bank could start cutting purchase obligations as of December the pace of its program. 

Dallas, Richard Fisher, president of the Fed also warned against a reduction of the stimulus, saying that "at some point will have to write." 

Gold prices have fallen 25% this year on concern the Fed will begin to reduce their stimulus sooner than expected. 

Elsewhere on the Comex, silver for December delivery fell 0.1% to trade at USD 20.75 a troy ounce, while copper for December delivery fell 2% to trade at USD 3.169 a pound, it the lowest since August 7 

Copper traders were disappointed by the lack of specific details about the political reforms announced at the meeting of the Third Plenary Session of China, which ended Tuesday. 

The leaders pledged to let markets play a crucial role in the economy over the next decade, but no other details were provided.
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