Investing.com - Gold prices extended losses from the previous session on Tuesday, as investors remained cautious ahead of the Federal Reserve's highly anticipated policy meeting due to begin later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell to a session low of USD1,254.70 a troy ounce, before trimming losses to trade at USD1,257.60 a troy ounce during European morning trade, down 0.5%.
The April contract settled 0.08% lower on Monday to end at USD1,263.50 a troy ounce. Futures were likely to find support at USD1,230.80 a troy ounce, the low from January 23 and resistance at USD1,280.10, the high from January 27.
Traders readied for the outcome of the Fed’s two-day policy meeting on Wednesday and possible news on the fate of the central bank’s bond buying program. The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over.
Market analysts expect the Fed to cut its bond buying program to USD65 billion from the current USD75 billion. The central bank announced its first cut to the USD85 billion in monthly bond purchases in December, citing an improving economy.
Markets were turning their attention to U.S. durable goods data due out later in the session as well as what will be a closely watch report on consumer confidence to gauge the strength of the economy.
Meanwhile, silver for March delivery shed 0.25% to trade at USD19.74 a troy ounce. Comex silver prices held in a range between USD19.59 a troy ounce and USD19.83.
The March silver contract ended Monday’s session up 0.14% to settle at USD19.79 a troy ounce.
Elsewhere on the Comex, copper futures for March delivery rose 0.1% to trade at USD3.263 a pound.
