NEW YORK (TheStreet) -- Gold prices softened ahead of a key Federal Open Market Committee statement that would provide investors with more direction on where the economy was headed.
The policymakers are expected to leave the key fed funds target rate untouched at zero to 0.25%. However, investors and analysts are still waiting to hear more about an expected discussion of more quantitative easing measures.
On Tuesday, another key piece of economic data -- housing starts -- was also announced. The Department of Commerce said housing starts increased 10.5% in August to 598,000 from 541,000 in July, which was better than the 550,000 starts economists were expecting, according to Briefing.com.
Gold for December delivery was falling $2.70 to $1,278.1 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Monday has traded as high as $1,283.90 and as low as $1273.50. The U.S. dollar index was down 0.4% to $80.99 while the euro rose 0.6% to $1.30 vs. the dollar. The spot gold price was losing more than $2, according to Kitco's gold index.
