Gold futures traded at their highest level in about three weeks Tuesday, finding support from weakness in the dollar a day ahead of the Federal Reserve's statement on monetary policy. Gold for June delivery on Comex GCM5, +0.85% added $8.20, or 0.7%, to $1,211.40 an ounce. Should that hold, it would be the highest settlement for the most-active contract since April 6. July silver SIN5, +1.19% advanced by 14.1 cents, or 0.9%, to $16.58 an ounce. Gold's strength Tuesday "looks like it's mainly U.S. dollar driven," said Colin Cieszynski, chief market strategist at CMC Markets, with gold turning upward around the same time the ICE U.S. dollar index DXY, -0.76% went south. "Gold may remain active over the next 36 hours because it looks like the street may be starting to price in a significant delay to interest rate lift-off but if it's only 3 months, I would have to wonder how much more room gold may have to rally," he said. Key near-term resistance remains in place near $1,220, he added. The Fed will conclude its two-day meeting on Wednesday. Investors don't expect policy makers to take action, but will be watching the central bank's statement for clues to the timing of a rate hike. Fed watchers, however, expect the central bank to leave itself plenty of wiggle room. If the Fed indicates a June interest-rate hike, gold will likely fall to $1,130 and below, but if it delays a hike to September, a rise in gold would be "dependent on the ability to break and trade over $1,252," said Chintan Karnani, chief market analyst at Insignia Consultants. If the Fed takes a cautious approach to raising interest rates, gold will trade based on technical levels, he said. In other metals trade, July platinum PLN5, +0.49% fell 60 cents, or 0.1%, to $1,152.80 an ounce, while June palladium PAM5, -0.48% fell $6.35, or 0.8%, to $776.10 an ounce. July copper HGN5, +0.49% was little changed at $2.7765 a pound. Source: MarketWatch
