Gold holds steady as traders focus on Fed

[BENGALURU] Gold held steady on Wednesday (Dec 15) after a sharp drop in the previous session, as investors looked for clues on the pace of tapering by the US Federal Reserve at the end of a 2-day policy meeting.

Spot gold was up 0.1 per cent to US$1,772.12 per ounce by 1.26 am GMT. US gold futures were unchanged at US$1,771.60.

The dollar index held firm against rival currencies.

The US central bank's 2-day monetary policy meeting is set to end later in the day, with investors expecting the Fed to announce a faster wind-down of asset purchases.

The European Central Bank, the Bank of England and the Bank of Japan are also scheduled to meet this week.

Bank of Japan Governor Haruhiko Kuroda said the country's consumer inflation may approach 2 per cent through various channels, reflecting recent increases in raw material costs.

British payrolls rose by a record 257,000 in November, underscoring the Bank of England's dilemma as it meets on interest rates this week.

Wall Street ended lower on Tuesday (Dec 14) after data showed producer prices increased more than expected in November, while the fast-spreading Omicron coronavirus variant also dampened investor sentiment.

Spot silver rose 0.1 per cent to US$21.95 an ounce.

Platinum shed 0.1 per cent to US$919.05 and palladium gained 0.6 per cent to US$1,631.19.

REUTERS