Investing.com - Gold futures fell below the key USD1,300-level during European morning hours on Wednesday, amid expectations the Federal Reserve will start tapering its USD85-billion-a-month bond-buying program at the conclusion of its policy meeting later in the day.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,301.60 a troy ounce during European morning hours, down 0.6%. The December contract ended 0.65% lower on Tuesday to settle at USD1,309.40 a troy ounce.
Gold prices fell by as much as 1.3% earlier in the day to hit a session low of USD1,291.70 a troy ounce, the weakest level since August 8.
Gold futures were likely to find short-term support at USD1,282.80 a troy ounce, the low from August 8 and resistance at USD1,332.40, the high from September 16.
Market analysts expect the Fed will start cutting monthly bond purchases by USD10 billion to USD75 billion when it concludes its two-day policy meeting later on Wednesday.
Monthly purchases of Treasuries will be scaled back by USD10 billion to USD35 billion, while mortgage-bond buying will remain unchanged at USD40 billion.
The precious metal is on track to post a loss of nearly 23% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery fell 0.7% to trade at USD21.63 a troy ounce, while copper for December delivery inched up 0.2% to trade at USD3.232 a pound.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,301.60 a troy ounce during European morning hours, down 0.6%. The December contract ended 0.65% lower on Tuesday to settle at USD1,309.40 a troy ounce.
Gold prices fell by as much as 1.3% earlier in the day to hit a session low of USD1,291.70 a troy ounce, the weakest level since August 8.
Gold futures were likely to find short-term support at USD1,282.80 a troy ounce, the low from August 8 and resistance at USD1,332.40, the high from September 16.
Market analysts expect the Fed will start cutting monthly bond purchases by USD10 billion to USD75 billion when it concludes its two-day policy meeting later on Wednesday.
Monthly purchases of Treasuries will be scaled back by USD10 billion to USD35 billion, while mortgage-bond buying will remain unchanged at USD40 billion.
The precious metal is on track to post a loss of nearly 23% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery fell 0.7% to trade at USD21.63 a troy ounce, while copper for December delivery inched up 0.2% to trade at USD3.232 a pound.