Gold firmed near the key $1,800 level on Tuesday, as the dollar softened and U.S. real yields plunged, though gains were limited by investor caution ahead of a Federal Reserve meeting that could provide details on stimulus tapering.

Spot gold rose 0.2% to $1,800.46 per ounce by 2:39 p.m. ET. U.S. gold futures settled little changed at $1,799.80.

The dollar index slipped 0.3%, lowering gold’s cost for holders of other currencies.

Also, the yield on 10-year Treasury inflation-protected securities (TIPS) hit a record low, translating into reduced opportunity cost of holding gold.

The precious metal has been confined to a tight trading range in recent weeks after briefly crossing $1,830, failing to capitalize on subdued U.S benchmark Treasury yields.

“Gold has to be looked at from a cross asset perspective and not just from bonds, and with strong returns in equity markets that impede capital flows into gold,” said Bart Melek, head of commodity strategies at TD Securities.

“To break out higher, there has to be some negativity and that is right now only being manifested in bond yields,” Melek said, while adding that weaker economic readings ahead would likely push gold prices higher again.

Investors are keeping a watch on how the Fed balances accelerating inflation with the increased economic threat of the Delta coronavirus variant, in its two-day policy meeting beginning on Tuesday.

Lukman Otunuga, senior analyst at FXTM, also said in a note that gold could remain range-bound until the Fed meeting.

“A hawkish central bank could deliver a heavy blow to zero-yielding gold. However, a meeting filled with doves may boost the precious metal’s allure, possibly sending prices higher.”

Elsewhere, silver slipped 1.8% to $24.71 per ounce, platinum shed 1.1% to $1,052.96 and palladium fell 1.8% to $2,609.14.