Gold, silver retreat from records, eye on Fed

LONDON, Apr 26 (Reuters): Silver and gold tumbled Tuesday as investors sold on uncertainty about the direction of monetary policy in the United States, but a softer dollar helped support prices and sentiment. Spot silver ceded nearly 5 per cent to $44.61 an ounce after touching $49.31 an ounce Monday, within reach of $49.48 hit in January 1980 It was bid at $45.77 an ounce at 1143 GMT from $46.90 late in New York on Monday and is heading for its biggest daily loss since March 15. Gold hit a record high of $1,518.10 a troy ounce Monday. It was last bid at $1,504.36 from $1,508.45 Monday. "The rally has been strong, it's not surprising to see profit-taking ahead of the FOMC meeting," said Peter Fertig, a consultant at Quantitative Commodity Research. "Markets expect it will be a dovish statement from the US Fed, but there are worries about them ending (Quantitative Easing) ahead of time." Tighter US policy would mean less cash floating around the financial system looking for a home and fewer worries about inflation, which investors protect against by buying gold. The Federal Open Market Committee meeting starts later Tuesday and concludes on Wednesday. The US central bank is expected to confirm it will stick to plans to complete a $600 billion bond-buying program.