Investing.com - Gold futures sank to a two-week low in European trade on Tuesday, as investors readjusted positions ahead of the Federal Reserve's two-day monetary policy meeting due to begin later in the day.
Gold for April delivery on the Comex division of the New York Mercantile Exchange slumped $15.30, or 1.23%, to trade at $1,229.80 a troy ounce by 07:45GMT, or 3:45AM ET. Prices fell by as much as 1.9% earlier to an intraday low of $1,226.00, the weakest level since March 2.
The Federal Reserve is not expected to take action on interest rates at the conclusion of its two-day policy meeting at 18:00GMT, or 2:00PM ET, on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates.
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for any change in tone about the economy or future rate hikes.
Many in the market anticipate the pace of increases to be gradual amid concerns over tepid growth overseas and divergent monetary policies between the U.S. and other nations.
Meanwhile, the U.S. is to release data on February retail sales and producer price inflation, as well as the March Empire State Manufacturing index at 8:30AM ET on Tuesday.
Gold prices are down nearly 4.5% since climbing to a 14-month high of $1,287.80 on March 11. Despite recent losses, prices of the yellow metal are still up nearly 16% so far this year as investors seek safe havens in the face of mounting instability in other financial markets.
Also on the Comex, silver futures for March delivery dropped 18.3 cents, or 1.18%, to trade at $15.33 a troy ounce during morning hours in London, while copper futures shed 2.9 cents, or 1.27%, to $2.211 a pound.