SINGAPORE, Dec 17 (Reuters): Gold steadied at just below $1,200 an ounce on Wednesday ahead of the outcome of the U.S. Federal Reserve's last policy meeting of the year, when it may signal how soon it will raise interest rates.
Investors were also keeping an eye on Russia after the rouble plunged more than 11 per cent against the dollar on Tuesday despite a hefty interest rate hike by the country's central bank.
Spot gold was up 0.2 per cent at $1,198.66 an ounce by 0707 GMT after a volatile session on Tuesday that pushed it to a session high above $1,221 then to a one-week low of $1,188.41, before ending marginally firmer.
Investors will be watching whether the Federal Open Market Committee will remove the phrase "considerable time" in the statement it will release at 1900 GMT with regard to the timing of an interest rate hike.
Dropping that phrase would mean the Fed is preparing the market for a rate hike next year as the U.S. economy gathers strength, analysts say, which could weaken prices of non-interest bearing assets such as gold.
"I think the Fed will reaffirm that growth has indeed picked up and the data looks positive for the coming year," said Barnabas Gan, analyst at OCBC Bank.
Gold holds below $1,200, Fed in focus
FE Team | Published: December 18, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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