Gold Holds Retreat Below $1,300 Before Conclusion of Fed Meeting

Gold held a drop below $1,300 an ounce, trimming a monthly increase, on speculation that the Federal Reserve will further reduce U.S. monetary stimulus at a two-day policy meeting that concludes today.

Bullion for immediate delivery traded at $1,295.13 an ounce at 9:30 a.m. in Singapore from $1,295.92 yesterday, when prices retreated for a second day. The metal increased 0.9 percent this month after sliding 3.2 percent in March, according to Bloomberg generic pricing.

Gold tumbled 28 percent in 2013 to end a 12-year win streak, on expectations that the Fed would scale back stimulus as the world™s largest economy recovers. The central bank will probably cut its monthly asset purchases by another $10 billion to $45 billion, a Bloomberg News poll shows, after announcing reductions at each of the past three meetings.

Gold has rallied 7.8 percent this year in part as the tension in Ukraine spurred haven demand.