Investing.com - Gold prices pulled back from the previous session’s three-week high on Tuesday, as investors remained cautious ahead of the Federal Reserve's policy meeting due to begin later in the day.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell to a session low of $1,263.70 a troy ounce, the weakest since June 12, before trimming losses to last trade at $1,266.20 during European morning hours, down 0.71%, or $9.10.
Gold hit $1,285.10 on Monday, the most since May 27, before settling at $1,275.30, up 0.09%, or $1.20.
Prices were likely to find support at $1,250.10, the low from June 10 and resistance at $1,285.10, the high from June 16.
Also on the Comex, silver for July delivery shed 0.69%, or 13.7 cents, to trade at $19.57 a troy ounce.
Investors looked ahead to the outcome of the upcoming Fed policy meeting on Wednesday, as they await fresh indications on the timing of possible interest rates increases.
Data released Monday showed that manufacturing activity in the New York region expanded more quickly than forecast in June, while a separate report showed that industrial production rose more than expected in May.
The Federal Reserve Bank of New York said that its general business conditions index increased to 19.3 this month from a reading of 19.0 in May. Analysts had expected the index to decline to 15.0.
U.S. industrial production rose by a seasonally adjusted 0.6% last month, above forecasts for a 0.5% gain.
Meanwhile, markets players continued to monitor developments in Iraq, where the conflict between Sunni Islamist insurgents and Iraqi army forces continued on Monday.
Elsewhere in metals trading, copper for July delivery tacked on 0.06%, or 0.2 cents, to trade at $3.052 a pound.