On Wednesday, gold prices fell as investors await the statement on monetary policy by the Federal Reserve during the session, in search of fresh signals on terms of interest rate rises in the United States.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery fell $ 1.40, or 0.12%, to $ 1179.50 for a troy ounce, during European morning trade. Futures fluctuated in a range between $ 1177.50 and $ 1182.10.
A day earlier, the price of gold lost $ 4.90, or 0.41%, to close trading at $ 1180.90. Futures are likely to be supported at $ 1168.50, the low of June 8 and find resistance at $ 1191.80, the high of June 10.
Also on the Comex, silver futures for July delivery fell 1.7 cents, or 0.11%, to be traded at $ 15.94 per troy ounce. On Tuesday, silver lost 11.8 cents, or 0.73%, falling to $ 15.96.
Later today, the Fed will release a policy statement, which will set out the economic projections and the factors influencing the decision on monetary policy. The central bank will also release its latest forecasts for economic growth and interest rates.
30 minutes after the statement of Janet Yellen from the FED, there is expected a press conference, as investors expect clear guidance on the possible terms of rates growth.
Recent economic reports have shown that the US economy is gaining momentum after slowing in the first quarter, giving rise to speculation that the US central bank may raise the rates in September.
The expectation of a lending rate increase reduces the price of gold, as the precious metal competes with earning assets in rate growth period.
The USD index, showing the relationship of the dollar to the basket of major currencies, fell early on Wednesday by 0.1% to 95.13 after falling from 95.50, the Tuesday high.
Meanwhile, investors continue to monitor developments of talks between Greece and its international creditors amid growing fears that the country could default and be forced to exit from the euro zone.
Europe demands from Greece to reduce costs in the amount of 2 billion euro for the adoption of an agreement that will unlock additional funds before the end of June, when the country has to pay 1.6 billion euro to the International Monetary Fund.
Greek default could lead to the exit of the country from the euro zone.
Copper futures for July delivery fell 0.2 cents, or 0.06%, to get traded at $ 2614 per pound. On Tuesday, copper fell to $ 2610, its lowest level since March 19, as concerns over the health of the Chinese economy have lowered the attractiveness this metal.
The Asian country is the world's largest consumer of copper, accounting for almost 40% of world consumption.