Investing.com - Gold was little changed near a three-month low on Tuesday, as investors stuck on the sidelines ahead of the Federal Reserve's two-day monetary policy meeting due to begin later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery inched up 90 cents, or 0.08%, to trade at $1,154.10 a troy ounce during European morning hours. Prices held in a range between $1,151.20 and $1,156.10.
Futures were likely to find support at $1,146.50, the low from March 11, and resistance at $1,165.70, the high from March 12.
A day earlier, gold tacked on 80 cents, or 0.07%, to settle at $1,153.20 as traders monitored the direction of the dollar to gauge the appeal of the precious metal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.3% to 99.83, moving away from recent 12-year peak of 100.77.
Gold prices often move inversely to the U.S. dollar, as the precious metal becomes less expensive for buyers using other currencies.
Market participants were looking ahead to Wednesday’s Federal Reserve statement to see if it would drop its reference to being "patient" before raising rates.
Traders would interpret such a move as a sign that the central bank could raise rates as early as its June monetary policy meeting.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Meanwhile, silver futures for May delivery dipped 2.9 cents, or 0.19%, to trade at $15.58 a troy ounce. On Monday, silver rose 12.3 cents, or 0.79%, to close at $15.61.
Elsewhere on the Comex, copper for May delivery slumped 3.4 cents, or 1.28%, to trade at $2.633 a pound amid ongoing concerns over the health of China's economy.
Losses were limited amid expectations for further monetary easing in China following a recent batch of disappointing economic data.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.