Copper settled down -0.14% at 456.60 fluctuated between small gains and losses, as traders awaited the outcome of the Fed's policy-setting meeting on Wednesday, amid expectations for a small reduction in the bank's stimulus program. Market traders expected the Fed will start cutting monthly bond purchases by $10 billion to $75 billion when it concludes its two-day policy meeting. Monthly purchases of Treasuries will be scaled back by $10 billion to $35 billion, while mortgage-bond buying will remain unchanged at $40 billion. Copper prices advanced on Monday as the US dollar came under pressure after former US Treasury Secretary Lawrence Summers bowed out of the race to succeed Ben Bernanke as the next chairman of the US central bank. Summers' was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, current Fed Vice Chairwoman Janet Yellen. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Investors remain skittish about the near-term outlook for metals prices, ahead of possible tapering commentary from the Fed. A stimulus tool known as quantitative easing that drives down long-term interest rates and weakens the dollar to spur recovery, a recipe for rising gold prices. While the Fed has committed to keep interest rates low, some reduction in the central bank's $85 billion-per-month bond-buying program is expected. Tapering to the tune of $10 billion to $15 billion is expected by many market participants. Technically market is getting support at 454.5 and below same could see a test of 452.4 level, And resistance is now likely to be seen at 459.3, a move above could see prices testing 462.

Trading Ideas:

Copper trading range for the day is 452.4-462.

Copper remained weak in cautious trade ahead of a Fed policy meeting at which central bank is widely expected to begin rolling back its monetary stimulus.

Expectations of higher supplies are also dragging on copper, which has fallen by about 11 percent so far this year.

Some investors were worried that the US Federal Reserve will scale back QE3, driving an exodus of capital from commodity market