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NEW YORK (TheStreet) -- Gold prices were dipping early Wednesday as traders engaged in light selling and anticipated that the Federal Reserve would stick to the status quo of continued tapering of its economic stimulus program.

Gold for June delivery at the COMEX division of the New York Mercantile Exchange was sliding $5.70 to $1,290.60 an ounce. The gold price traded as high as $1,296.80 and as low as $1,289.10 an ounce.

"At this particular moment in time, I can see no real reason for being long of gold and would look to sell rallies towards $1,300 [an ounce]," David Govett, head of precious metals at Marex Spectron, wrote in a note to clients. "On the whole though, with few figures out of any import today, I don't see it being an overly exciting one."

The Fed's policy-makers met Tuesday to commence a two-day meeting, during which many economists expect the central bank to curb its monthly asset purchases by a further $10 billion to $45 billion.

Gold investors view the Fed's monetary stimulus as positive or supportive for gold prices because they see it as inflationary policy. The yellow metal is considered a hedge against inflation risks.

Silver prices for July delivery -- the most actively traded contract -- were dropping 22 cents to $19.32 an ounce, while the U.S. dollar index was declining 0.21% to $79.65.

-- Written by Joe Deaux in New York.

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