Gold rose after the release of US data

Gold prices jumped to a three-day highs after weak US data on durable goods undermined optimism about the strength of the economy and caused a decline in the dollar.

Index USD, which tracks the greenback against a basket of six other major currencies, was down 0.25% to 85.40.

The US Commerce Department reported that the total level of orders for durable goods, taking into account the transport equipment fell last month to a seasonally adjusted 1.3%, disappointing expectations for a gain of 0.4%.

The volume of orders for durable goods excluding transportation equipment fell in September to a seasonally adjusted 0.2%, while the projected rise of 0.5%.

The volume of new orders for non-defense capital goods in the industry excluding aircraft, a key barometer of business investment by the private sector fell last month by 1.7%, confounding expectations for a 0.6% rise.

The volume of new orders for non-defense capital goods in the industry excluding aircraft, a category that is used for the calculation of the quarterly economic growth fell in September by 0.2%, although it is expected to rise by 0.7%.

Today, investors expect the beginning of a long-awaited meeting of the Fed.

The Fed is likely to announce on Wednesday the completion of its enabling asset purchases, known as quantitative easing, but it is also expected that the bank will calm the markets that interest rates will remain at current levels for some time.

Investors will closely examine the Fed statement to find in it further hints on the timing of rising interest rates and get an idea about the state of the global economy.

Another sign of the economic slowdown in Europe and China could force the US central bank to stick to a restrained monetary policy and to postpone a possible rate increase.

The cost of December gold futures on the COMEX today rose to 1235.50 dollars per ounce.