Gold fluctuates as Fed meets for monetary policy

CHICAGO, Jan. 30 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange closed lower on Tuesday as the U.S. Federal Reserve started its two-day policy meeting.

The most active gold contract for April delivery fell 5.1 U.S. dollars, or 0.38 percent, to close at 1,340.00 dollars per ounce.

Gold futures were trading higher in the morning but gave up the early gains towards the end of the session.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, fell 0.18 percent to 89.19 as of 1806 GMT, but still higher than early morning.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.

Additional pressure on gold came from the U.S. Treasury. The 10-year bond yield has been pushed above 2.7 percent.

The Federal Reserve's Janet Yellen chaired her last policy meeting starting on Tuesday. Investors do not expect any surprise out of the meeting, but are anxious to look for clues about future rate hikes.

Before the Fed updates its monetary policy on Wednesday, President Donald Trump is to deliver his first State of the Union on Tuesday night. Trump's position on economy, infrastructure, trade and geopolitical risks will be under close watch by market observers.

As for other precious metals, silver for March delivery fell 6.9 cents, or 0.40 percent, to settle at 17.058 dollars per ounce. Platinum for April lost 10.90 dollars, or 1.08 percent, to close at 1,001.80 dollars per ounce. Enditem