Precious Gold resumed its drop for a second straight session after hitting its highest level in three weeks on Monday, ahead of Fed monetary meeting starting later in the day.
The metal rose fell after touching a peak of $1284.72 as it faced resistance at that level which represents Daily SMA 200.
Gold is currently trading around $1265.60 an ounce after hitting a high of $1273.11 and a low of $1263.12.
It seems that investors preferred to close their positions and stay sidelined until knowing the outcome of the Fed’s two0day meeting.
Markets will anticipate any comments from Fed Chairwoman Janet Yellen on the timing of raising interest rates.
Yesterday, a report showed that U.S. empire manufacturing soared to 19.28 this month from 19.01 in May, beating estimates of 15.00.
Investors will keep their attention on U.S. data on expectations the Fed would continue with its stimulus reduction.
Later in the day, eye will focus on U.S. housing starts and building permits for the month of May.
It is worthwhile to mention that gold prices has benefited from the turmoil in Iraq and tensions between Ukraine and Russia to climb to a fresh three-week high this week.
The US Dollar retreated versus a basket of major currencies to hover around 80.47, after touching a bottom of 80.38.
Crude oil for August’s delivery inched down to trade around $105.98 a barrel from the session’s opening of $106.02.