Investing.com - Gold futures fell to the lowest levels of the session on Tuesday, after data showed that U.S. consumer confidence improved to a seven-year high in July, underlining optimism over the economic outlook.
On the Comex division of the New York Mercantile Exchange, gold for December delivery dipped 0.34%, or $4.40, to trade at $1,301.30 a troy ounce during U.S. morning hours. Prices held in a range between $1,300.50 and $1,314.40.
Gold ended Monday’s session up 0.04%, or 50 cents, to settle at $1,305.80 an ounce. Futures were likely to find support at $1,287.50, the low from July 24 and resistance at $1,320.40, the high from July 21.
Also on the Comex, silver for September delivery eased up 0.02%, or 0.5 cents, to trade at $20.57 a troy ounce, after rising to as high as $20.84 earlier.
The Conference Board said that its index of consumer confidence rose to 90.9 this month from a reading of 86.4 in June. Analysts expected the index to decline to 85.3 in July.
Investors now shifted their focus to the Federal Reserve's upcoming policy meeting, due to begin later in the day.
The central bank is likely to stick to its timetable to taper its monthly bond purchases by another $10 billion to a total of $25 billion a month.
Meanwhile, Wednesday’s preliminary estimate on second quarter economic growth and Friday’s U.S. jobs report for July were both expected to indicate that the economic recovery is continuing.
Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.
Elsewhere in metals trading, copper for September delivery shed 0.47%, or 1.5 cents, to trade at $3.228 a pound.