Gold steadies as investors await Fed minutes

Gold prices steadied on Wednesday, as bullion's appeal as hedge against inflation remained intact ahead of the release of the US Federal Reserve minutes due later in the day, reports Reuters.
Spot gold was steady at $1,852.80 per ounce by 1258 GMT, but was off an eight-month high of $1,879.48 reached in the last session. US gold futures 0.1 per cent to $1,854.10.
"Inflation could prove to be more stubborn. That's why gold as an inflation hedge could remain relevant for longer," said Xiao Fu, head of commodities markets strategy at Bank of China International.
Market participants are awaiting the Fed minutes of its Jan 25-26 policy meeting due at 1900 GMT.
The US central bank will kick off its tightening cycle in March with a 25 basis-point interest rate hike, a Reuters poll found, but a growing minority point to a more aggressive half-point move to clamp down inflation.
"Once the Fed starts raising rates and... if it's faster than expected you'll see gold dropping, but I don't see a collapse," said Bernard Dahdah analyst at Natixis, adding that prices could then drop towards $1,700 and high-$1,600 range.