Gold Prices Slip Ahead of Fed Meeting

(AP) -

Gold prices settled lower Tuesday amid expectations that the Federal Reserve will continue easing off its support for the economy.

Gold for August delivery fell $3.30 to settle at an even $1,272 an ounce.

The Fed began a two-day meeting Tuesday. When it wraps up, many analysts expect the Fed to announce another $10 billion cut to its bond-buying program, trimming its monthly purchases to $35 billion.

Gold prices have slumped 8 percent over the past year, as the Fed has scaled back its bond purchases. Traders expect interest rates to creep higher, weakening the appeal of gold as an investment.

Other metals edged up slightly Tuesday. Silver for July rose two cents to $19.73 an ounce. Copper for the same month rose a penny to $3.06 a pound.

Platinum for July delivery rose $4 to $1,443.10 an ounce, while palladium for September gained $7.35 to $816.70 an ounce.

In crop trading, soybeans dropped 24 cents to $13.98 a bushel. Wheat rose a penny to $5.82 a bushel, while corn fell 2 cents to $4.39 a bushel.