Gold prices slip ahead of Fed meeting

AP News
Posted: Jun 17, 2014 3:37 PM

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

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

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 effort. Traders expect interest rates to creep higher, weakening the appeal of gold as an investment.

Other metals edged up slightly Tuesday. In crop trading, soybeans dropped 24 cents to $13.98 a bushel.

Crude oil traded lower but remained above $106 a barrel.