Gold falls below $1,300 per ounce

LONDON, Apr 29 (Reuters): Gold fell below $1,300 an ounce on Tuesday as the market focused on the U.S. Federal Reserve's policy meeting and expectations for strong U.S. data, though losses were limited by uncertainty over the situation in Ukraine.
The Fed starts a two-day policy meeting later on Tuesday and is expected to reduce its monthly bond purchase programme for the fourth time in a row and to provide guidance on when it might raise interest rates.
Spot gold fell 0.4 percent to $1,290.10 an ounce by 1019 GMT. Prices touched a near two-week high of $1,306.11 on Monday on escalating geopolitical worries before cutting gains on signs of a strengthening U.S. housing market.
US gold futures for June delivery fell 0.7 percent to $1,290.60 an ounce.
"Rumbling in the background there are still tensions between Russia and the West over Ukraine ... but we are seeing some pre-selling ahead of the FOMC (Federal Open Market Committee meeting) and the non-farm payrolls," Societe Generale analyst Robin Bhar said.
"These are both expected to be generally upbeat on the economy ... therefore that is going to be bearish for gold."
A strong economy could mean that the Fed could quicken its path towards a tighter monetary stance.
Loose monetary policy, coupled with prolonged low interest rates, which cut the opportunity cost of holding non-yielding bullion above other assets, had been important factors driving gold higher in recent years.
In the latest sign that the economy is recovering well, data on Monday showed contracts to buy previously owned U.S. homes rose in March for the first time in nine months.