Gold futures ended slightly higher in quiet trade on COMEX on Tuesday as the market took a breather amid a resilient dollar, and bullion investors now focused on the upcoming Federal Reserve's policy-setting statement.

Silver futures could not hold ground and fell in line with industrial metals. It slid by 0.37 percent on COMEX. On MCX, Silver futures ended slightly positive supported by the fall in rupee against the dollar.

IN FOCUS:

Russia plans to increase its gold output by developing several large deposits in Siberia and the country's far east. Russia was the world's fifth-largest gold producer in 2008, with a 7.8 percent share of world production. Its reserves are second only to South Africa's.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,065.49 tonnes as of Aug. 11, down 3.06 tonnes or 0.29 percent from the previous business day. ETFS US Silver Trust assets exceed $80 million.

Sacks' Investec Global Gold Fund, which was founded in 1990, has 126.3 million pounds ($208 million) in assets under management, and invests primarily in gold mining equities.

On the supply side, the world's largest gold producer, Barrick Gold, said it produced 1.87 million ounces of gold in the second quarter and is on track to meet its 2009 output target of 7.2-7.6 million ounces.

China’s industrial output showed a surge of 10.8 percent in July, lower than the expected figure of 11.7 percent. It was found to be 10.7 percent in June.

FUNDAMENTAL OUTLOOK:

Precious metals will get a direction from the Fed policy setting statement today. Though it is very unlikely that Fed would raise the interest rates now, any inflationary clue may support the prices of precious metals. We expect sideways to up trend in this complex during the day.