Investing.com - Gold prices fell on Tuesday as investors bet the Federal Reserve will conclude a two-day meeting on Wednesday announcing plans to taper its USD85 billion monthly bond-buying program.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,309.10 during U.S. afternoon hours, down 0.66%.
Gold prices hit a session low of USD1,306.10 a troy ounce and high of USD1,323.40 a troy ounce.
Gold futures were likely to find support at USD1,303.20 a troy ounce, Monday's low, and resistance at USD1,393.80, the high from Sept. 8.
The December contract settled up 0.70% at USD1,317.80 a troy ounce on Monday.
Gold prices fell as many investors felt the Fed will announce plans to trim the amount of bonds it buys each month to spur recovery, a stimulus tool known as quantitative easing that drives down long-term interest rates and weakens the dollar to spur recovery, a recipe for rising gold prices.
Losses were limited, however, as investors also bet the Federal Reserve will dismantle the stimulus program gradually.
Few, if any, expect the Federal Reserve to hike interest rates any time soon.
Elsewhere, soft pricing data out of the U.S. curbed gold's losses as well.
The U.S. consumer price index rose by 0.1% in August, missing expectations for a 0.1% gain.
The core consumer price index, which is stripped of volatile food and energy prices, rose 0.1% in August, in line with forecasts.
Elsewhere on the Comex, silver for December delivery was down 1.00% at USD21.788 a troy ounce, while copper for December delivery was up 0.02% and trading at USD3.223 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,309.10 during U.S. afternoon hours, down 0.66%.
Gold prices hit a session low of USD1,306.10 a troy ounce and high of USD1,323.40 a troy ounce.
Gold futures were likely to find support at USD1,303.20 a troy ounce, Monday's low, and resistance at USD1,393.80, the high from Sept. 8.
The December contract settled up 0.70% at USD1,317.80 a troy ounce on Monday.
Gold prices fell as many investors felt the Fed will announce plans to trim the amount of bonds it buys each month to spur recovery, a stimulus tool known as quantitative easing that drives down long-term interest rates and weakens the dollar to spur recovery, a recipe for rising gold prices.
Losses were limited, however, as investors also bet the Federal Reserve will dismantle the stimulus program gradually.
Few, if any, expect the Federal Reserve to hike interest rates any time soon.
Elsewhere, soft pricing data out of the U.S. curbed gold's losses as well.
The U.S. consumer price index rose by 0.1% in August, missing expectations for a 0.1% gain.
The core consumer price index, which is stripped of volatile food and energy prices, rose 0.1% in August, in line with forecasts.
Elsewhere on the Comex, silver for December delivery was down 1.00% at USD21.788 a troy ounce, while copper for December delivery was up 0.02% and trading at USD3.223 a pound.