Gold futures on the COMEX division of the New York Mercantile Exchange fell Monday ahead of the Federal Reserve's policy meeting that begins Tuesday.

The most active gold contract for February delivery fell 0.9 U. S. dollar, or 0.07 percent, to settle at 1,263.4 dollars per ounce.

The Federal Open Market Committee will kick off a two-day meeting on Tuesday. It is widely expected that the Federal Reserve will conclude the meeting with an additional 10-billion-dollar scaledown in asset purchase. Market analysts believe that gold prices are unlikely to stray far from current levels before any announcement comes out on Wednesday.

Economic data released Monday was neutral to gold. U.S. Commerce Department said that sales of new single-family homes dropped 7 percent in December to a seasonally adjusted annual rate of 414,000, but the year of 2013 as a whole saw the highest sales level in five years.

U.S. stocks fell in fluctuating trading on the weaker-than- expected new home sales data and ongoing concerns about emerging markets 

Only a bearish stock market has bailed gold out of its lowest level on the day as a weaker U.S. stock market helped support demand for the precious metal.

Silver for March delivery gained 2.8 cents, or 0.14 percent, to close at 19.793 dollars per ounce. Platinum for April delivery lost 7.5 dollars, or 0.52 percent, to close at 1,421.1 dollars per ounce.