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Precious metals traded higher ahead of the Federal Open Market Committee (FOMC) meeting slated for September 12-13 and taking currency cues with the Euro pushing to 1.2871.

It was a relatively quiet day on the metals markets as spot gold traded in a narrow range with a  slight bias to the upside. The major focus is on the FOMC meeting slated for September 12-13. The yellow metal moved higher in early trade to $1738 as the Euro strengthened vs. the green back.

Spot gold slid almost 1% as month end futures contracts rolled over and a weaker Euro all added to the slide, which saw gold touch a new weekly low of $1647.

Rather subdued day on the markets after yesterdays push higher by Federal Reserve chairman Ben Bernanke's comments on accommodative monetary policy, while a softer euro limited gains. Spot gold tried its hand at $1700, falling just short.

Spot gold took flight touching a intra-day high of $1689 after Federal Reserve chairman Ben Bernanke said that US monetary policy must be accommodative to improve the nation's employment rate.

Spot gold continued its sell of trading to a 2 month low of $1639.20 as “risk on” was the theme of the day.

Spot gold prices remained just above session lows still reeling by liquidity issues after the Fed's comments on quantitative easing yesterday, which also weighed on the euro. The euro vs. the U.S dollar hit multi month lows of 1.3008 as traders continue to buy U.S dollars on the upbeat economic outlook for the U.S. It was a light day data wise for the U.S so most traders kept the momentum from the Feds earlier comments. The descending euro also exacerbated gold’s slide.

Spot gold started the session trading to an intra-day low of $1760 as early profit taking and better than expected US pending home sales at 2% against an expected 1.2% and a previous 1.9%.