2014.07.3009:03:00UTC+00Gold Hugs $1,300 Ahead Of Fed, GDP

Gold prices are little changed Wednesday morning as traders look ahead to the U.S. GDP data and the Federal Reserve's monetary policy statement.

With the focus on Fed's impending statement, traders are treading cautiously, refraining from significant moves. The Fed is widely expected to reduce its asset purchases by another $10 billion, cutting its monthly asset buying program to $25 billion.

Traders will be looking for clues about the timing of monetary tightening by the Fed. Earlier this month, the Fed Chairman Janet Yellen had indicated that a rate hike may happen sooner than anticipated if the labor market sees a sustained recovery.

Meanwhile, conflicts in Ukraine and the Middle East continue unabated. The U.S. and European Union have reportedly imposed more sanctions on Russia, condemning its support to Ukrainian separatists.

According to reports, Israeli forces have attacked a U.N. school in northern Gaza this morning, killing about 15 Palestinians.

Gold futures for December are up $0.40 or 0.03 percent at $1,300.90 an ounce.

Silver for September is up $0.035 or 0.17 percent at $20.618 an ounce. Meanwhile, copper is down $0.004 or 0.11 percent at $3.215 per pound.

Traders are also looking ahead to the report on private sector employment from ADP, due for release at 8:15 am ET, and the Commerce Department's report on U.S. second quarter GDP, due at 8:30 am ET.

Economists expect the U.S. economy grew 3 percent in the second quarter, snapping back from a dreadful winter.