Investing.com - Gold edged higher on Monday, as the U.S. dollar took a breather from its recent rally ahead of the Federal Reserve's two-day monetary policy meeting beginning on Tuesday.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose $6.50, or 0.56%, to trade at $1,158.90 a troy ounce during European morning hours. Prices held in a range between $1,152.80 and $1,163.20.
Futures were likely to find support at $1,146.50, the low from March 11, and resistance at $1,169.60, the high from March 10.
Meanwhile, silver futures for May delivery climbed 20.9 cents, or 1.35%, to trade at $15.70 a troy ounce.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.4% to 100.31, after hitting an intraday peak of 100.71, a level last reached in April 2003.
Gold and silver prices often move inversely to the U.S. dollar, as precious metals become 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.
Elsewhere on the Comex, copper for May delivery tacked on 0.8 cents, or 0.31%, to trade at $2.672 a pound as prices remained supported by expectations for further monetary easing in China.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.