Investing.com - Gold prices traded flat on Tuesday, giving back gains from mixed U.S. data that had softened the dollar, which trades inversely with the yellow metal.
Gains were short-lived as markets were eager for the Federal Reserve's Wednesday statement on monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were unchanged at $1,229.30, up from a session low of $1,222.40 and off a high of $1,235.20.
The December contract settled down 0.20% at $1,229.30 on Monday.
Futures were likely to find support at $1,220.00 a troy ounce, the low from Oct. 15, and resistance at $1,255.60, last Tuesday's high.
The dollar slid and gold spiked earlier after data revealed that that U.S. orders for long-lasting manufactured goods fell unexpectedly for a second consecutive month in September.
The U.S. Commerce Department reported earlier that total durable goods orders, which include transportation items, decreased by 1.3% last month, disappointing expectations for a gain of 0.5%.
Orders for durable goods in August were revised to a decline of 18.3% from a previously reported drop of 18.4%.
Durable goods are typically designed to last at three years and include trains, planes and automobiles.
Core durable goods orders, which are stripped of volatile transportation items and include household appliances and similar components, eased down by 0.2% in September, defying forecasts for a 0.5% gain. Core durable goods orders rose by 0.7% in August.
Orders for core capital goods, a key barometer of private-sector business investment, fell by 1.7% last month, worse than expectations for a 0.6% increase and after rising 0.3% in August.
Shipments of core capital goods, a category used to calculate quarterly economic growth, declined 0.2% in September, disappointing forecasts for a 0.7% gain, after rising 0.1% in the preceding month.
While demand for computers and machinery declined, a sign many firms may be holding off on updating equipment, demand for cars and trucks remained firm, which brought the dollar up from earlier lows and wiped out gold's gains alongside upbeat consumer confidence data.
The Conference Board reported earlier that its consumer confidence index jumped to 94.5 this month from 89.0 in September, boosted by a more favorable assessment of the current job market and business conditions.
Economists had expected the index to tick down to 87.0 this month.
The report left many investors concluding that while demand for goods and services in the U.S. remains cautious, consumers still remain upbeat over the U.S. economy and will ramp up spending soon.
Gold prices hovered flat after investors jumped to the sidelines ahead of the Federal Reserve's statement on monetary policy on Wednesday.
The Fed is widely seen closing its bond-buying program, though uncertainty as to whether or not the statement will contain dovish or hawkish language surrounding interest rates prompted investors to avoid the yellow metal ahead of time.
Investors expect the U.S. central bank to hike interest rates some time in 2015, though spotty U.S. data have many second guessing whether tightening will come sooner or later in the year.
Meanwhile, silver for December delivery was up 0.36% at $17.223 a troy ounce, while copper futures for December delivery were up 0.91% at $3.092 a pound.