- Gold and silver prices declined modestly in cautious trade on Wednesday, as market players were jittery ahead of the Federal Reserve''s highly anticipated policy statement, expected later in the day.

On the Comex division of the New York Mercantile Exchange, gold for August delivery held in a range between $1,267.20 and $1,272.30 a troy ounce. Prices last traded at $1,269.60 during European morning hours, down 0.19%, or $2.40.

Gold fell to $1,258.00 on Tuesday, the lowest since June 11, before trimming losses to settle at $1,272.00, down 0.26%, or $3.30.

Prices were likely to find support at $1,250.10, the low from June 10 and resistance at $1,285.10, the high from June 16.

Also on the Comex, silver for July delivery shed 0.06%, or 1.2 cents, to trade at $19.72 a troy ounce.

Market analysts expect the Fed to taper its monthly bond buying program by another $10 billion from the current $45 billion, due to an improving economy.

The decision will be followed by a press conference with Chair Janet Yellen, amid speculation over the timing of possible interest rate increases. The central bank will also provide its latest forecasts for growth, inflation and interest rates.

Meanwhile, markets players monitored developments in Iraq, where the conflict between Sunni Islamist insurgents and Iraqi army forces continued. Iraq''s largest oil refinery was attacked Wednesday by Sunni militants using machine guns and mortars, according to media reports.

Elsewhere in metals trading, copper for July delivery was flat to trade at $3.061 a pound.

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